A Year-End Review: Ether ETFs Gain Momentum
In December 2024, the total net inflows into Ethereum (ETH) exchange-traded funds (ETFs) surpassed an impressive $2.6 billion. This remarkable growth is a testament to the increasing popularity of ETH ETFs as they gain traction against their wildly popular counterparts, Bitcoin (BTC) ETFs. Data from Farside Investors highlights this trend, which has been ongoing since November 2024.
Eight Consecutive Weeks of Net Inflows
In November and December 2024, Ether ETFs witnessed eight consecutive weeks of net inflows. Among these, a record-breaking $2.2 billion in net inflows was observed in the week of November 26, according to data from CoinShares. This surge is a significant milestone for ETH ETFs, which have been steadily gaining ground against their BTC counterparts.
Net Inflows Lag Behind Bitcoin ETFs
Although Ether ETFs have made impressive strides, they still lag behind Bitcoin ETFs in terms of net inflows. According to Farside Investors, Bitcoin ETFs closed out 2024 with a staggering $35 billion in net inflows. However, analysts believe that this gap may narrow or even reverse in 2025 if ETH’s price performance improves and regulators allow the funds to generate yields from staking.
Among the top-performing Ether funds, BlackRock’s iShares Ethereum Trust (ETHA) led the pack with an impressive $3.5 billion in net inflows in 2024. Fidelity Ethereum Fund (FETH) came in second place, onboarding $1.5 billion in net inflows during the same period. However, these gains were partly offset by significant net outflows from Grayscale Ethereum Trust (ETHE), which has been one of the most popular Ether ETFs.
Grayscale’s ETHE Faces Increased Competition
Grayscale’s ETHE charges a management fee of 1.5%, which may be a deterrent for some investors. In July 2024, the asset manager listed Grayscale Ethereum Mini Trust as a cheaper alternative, which may have contributed to the decline in net inflows into ETHE. The competition among Ether ETFs is expected to intensify in 2025, with more fund managers entering the market.
Will Ether Outperform Bitcoin in 2025?
Since November 2024, ETH has consistently outperformed BTC in both spot and derivatives markets, according to a December report by Bybit. This trend is expected to continue in 2025, with sustained growth in network activity, including from the proliferation of artificial intelligence agents, propelling Ether’s performance.
Matt Hougan, Bitwise’s head of research, told Cointelegraph that Ethereum and Base, an Ethereum layer-2 scaling network, are "where many AI agents are currently operating." This growing popularity is expected to drive Ether’s price upwards in 2025.
Asset Manager VanEck Predicts ETH Price
According to asset manager VanEck, Ether’s spot price is expected to reach $6,000 by the fourth quarter of 2025. This prediction highlights the growing optimism among investors and analysts regarding Ether’s future prospects.
Conclusion
The rapid growth of Ether ETFs in December 2024 marks a significant milestone for ETH investors. As the cryptocurrency continues to gain traction against its Bitcoin counterparts, it remains to be seen whether it will outperform BTC in 2025. With sustained growth in network activity and increasing popularity among AI agents, Ether’s price is expected to reach new heights in the coming year.
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