Ether ETFs See Record-Breaking Net Inflows as Prices Surge
According to data from Farside Investors, total net inflows into Ether (ETH) exchange-traded funds (ETFs) surpassed $2.6 billion in December 2024. This marks a significant milestone for the funds, which have been gaining traction against wildly popular Bitcoin (BTC) ETFs.
A Record-Breaking Week
In November and December, Ether ETFs experienced eight consecutive weeks of net inflows, including a record-breaking $2.2 billion in the week of Nov. 26, according to data from CoinShares. This surge in demand is a testament to the growing interest in Ethereum (ETH) as an investment opportunity.
A Lagging but Growing Market
While Ether ETFs have been gaining momentum, they still lag behind Bitcoin ETFs, which closed out 2024 with upward of $35 billion in net inflows, according to Farside. However, analysts predict that this trend may reverse in 2025, especially if ETH’s price performance enhances ETF returns and regulators allow the funds to generate yields from staking.
Top Ether Funds
Among the top-performing Ether ETFs are BlackRock’s iShares Ethereum Trust (ETHA) and Fidelity Ethereum Fund (FETH). In 2024, ETHA onboarded upward of $3.5 billion in net inflows, while FETH notched second place with $1.5 billion in net inflows.
Grayscale’s ETHE
In contrast to these successful funds, Grayscale’s Ethereum Trust (ETHE) saw significant net outflows, totaling upward of $3.6 billion in 2024. This is partly due to the trust’s higher management fees of 1.5%. In response, the asset manager launched a cheaper alternative, the Grayscale Ethereum Mini Trust.
A Dynamic Similar to Bitcoin ETFs
The dynamic between Ether and Bitcoin ETFs is similar to that seen with their underlying assets. BlackRock’s iShares Bitcoin Trust (IBIT) clocked approximately $37 billion in net inflows against more than $20 billion in net outflows from Grayscale Bitcoin Trust (GBTC).
Will Ether Outperform Bitcoin ETFs in 2025?
Since November, ETH has outperformed BTC in crypto spot and derivatives markets, according to a December report by Bybit, a crypto exchange. Meanwhile, BTC ETFs saw the biggest net outflows ever on Dec. 19.
The Potential for Sustained Growth
Sustained growth in network activity, including from the proliferation of artificial intelligence agents, could further propel Ether’s performance. This is according to Matt Hougan, Bitwise’s head of research, who told Cointelegraph that Ethereum and Base, an Ethereum layer-2 scaling network, are "where many AI agents are currently operating."
A Price Prediction
Asset manager VanEck estimates that Ether’s spot price will reach $6,000 by the fourth quarter of 2025. This prediction is based on the fund’s research and analysis of market trends.
Conclusion
The surge in net inflows into Ether ETFs marks a significant milestone for the funds, which have been gaining traction against wildly popular Bitcoin ETFs. While they still lag behind their BTC counterparts, analysts predict that this trend may reverse in 2025. With sustained growth in network activity and potential regulatory changes on the horizon, it will be interesting to see how Ether’s price performance enhances ETF returns.
Sources:
- Farside Investors
- CoinShares
- Bybit
- Cointelegraph
- VanEck
Related Articles:
- Staking may come soon for US Ether ETFs: Bernstein
- 5 real use cases for useless memecoins
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