Net inflows into Ether (ETH) exchange-traded funds (ETFs) surpassed $2.6 billion in December, gaining significant traction against the long-dominant Bitcoin (BTC) ETFs, according to data from Farside Investors.
This momentum built upon a strong November and December, with Ether ETFs experiencing eight consecutive weeks of net inflows, culminating in a record-breaking $2.2 billion in the week of November 26th, according to CoinShares data. While still trailing BTC ETFs, which amassed over $35 billion in net inflows throughout 2024, analysts suggest this trend could reverse in 2025. This shift could be driven by enhanced Ether ETF returns fueled by strong price performance and potential regulatory approvals for staking yield generation within the funds.
Leading the Pack:
BlackRock's iShares Ethereum Trust (ETHA) emerged as the top performer, attracting over $3.5 billion in net inflows during 2024. Fidelity Ethereum Fund (FETH) followed closely with $1.5 billion in net inflows.
Conversely, Grayscale Ethereum Trust (ETHE), launched in 2017, experienced significant net outflows exceeding $3.6 billion. This outflow can be attributed in part to the launch of Grayscale Ethereum Mini Trust, a lower-cost alternative.
A Similar Trend in Bitcoin ETFs:
A similar dynamic played out in the Bitcoin ETF space. BlackRock's iShares Bitcoin Trust (IBIT) garnered approximately $37 billion in net inflows in 2024, while Grayscale Bitcoin Trust (GBTC) witnessed over $20 billion in net outflows.
Outperforming Bitcoin in 2025?
Since November, ETH has consistently outperformed BTC in both spot and derivatives markets, according to a December report by crypto exchange Bybit. This trend, coupled with the largest-ever net outflows from BTC ETFs on December 19th, further strengthens the case for Ether ETFs gaining an edge.
Fueling Growth:
Matt Hougan, Bitwise's head of research, emphasizes the role of growing network activity, particularly driven by the proliferation of artificial intelligence agents, in further propelling Ether's performance. He highlights that Ethereum and its layer-2 scaling network, Base, are currently the preferred platforms for many AI agents.
Price Projections:
Asset manager VanEck projects a bullish outlook for Ether, forecasting its spot price to reach $6,000 by the fourth quarter of 2025.
January 2025, Cryptoniteuae