Ethereum exchange-traded funds (ETFs) have gained significant traction in the market, with total net inflows surpassing $2.6 billion in December alone. This surge in demand has put Ether ETFs on a par with wildly popular Bitcoin ETFs, according to data from Farside Investors.
Eight Consecutive Weeks of Net Inflows for Ethereum ETFs
In November and December, Ethereum ETFs experienced eight consecutive weeks of net inflows. One notable week was the record-breaking $2.2 billion in net inflows on November 26, as reported by CoinShares. While this is a significant milestone for Ethereum ETFs, they still lag behind Bitcoin ETFs, which closed out 2024 with an astonishing $35 billion in net inflows, according to Farside.
Analysts Predict Reversal in 2025
Analysts suggest that the trend may reverse in 2025. If Ether’s price performance improves and regulators allow Ethereum-based funds to generate yields from staking, this could significantly enhance ETF returns. According to a source from Farside Investors:
"Ethereum’s potential for growth is vast, and we expect to see significant gains in 2025."
Top Performing Ether Funds
Among the top-performing Ether funds are BlackRock’s iShares Ethereum Trust (ETHA) and Fidelity Ethereum Fund (FETH). ETHA led the pack with a whopping $3.5 billion in net inflows, while FETH notched an impressive $1.5 billion.
Grayscale Ethereum Trust Experiences Net Outflows
In contrast, Grayscale’s Ethereum Trust (ETHE) experienced significant net outflows of approximately $3.6 billion. This was partly due to the trust’s high management fees of 1.5%. In response to this, Grayscale launched the Ethereum Mini Trust as a cheaper alternative in July.
Similar Dynamic for Bitcoin ETFs
Bitcoin ETFs displayed a similar dynamic, with BlackRock’s iShares Bitcoin Trust (IBIT) clocking an astonishing $37 billion in net inflows against over $20 billion in net outflows from Grayscale Bitcoin Trust (GBTC).
Will Ethereum Outperform Bitcoin ETFs in 2025?
Since November, ETH has outperformed BTC in crypto spot and derivatives markets, according to a December report by Bybit. Meanwhile, BTC ETFs saw the biggest net outflows ever on December 19.
Matt Hougan, Bitwise’s head of research, believes that sustained growth in network activity, particularly from artificial intelligence agents, could further propel Ether’s performance:
"Ethereum and Base, an Ethereum layer-2 scaling network, are ‘where many AI agents are currently operating’."
VanEck Estimates $6,000 Price Target for Ether
Asset manager VanEck estimates that Ether’s spot price will reach $6,000 by the fourth quarter of 2025. While this is a lofty target, it highlights the potential for growth in the Ethereum market.
Conclusion
The surge in demand for Ethereum ETFs has put them on par with Bitcoin ETFs in terms of net inflows. Analysts predict that this trend may reverse in 2025, driven by improved price performance and regulatory changes. With sustained growth in network activity and a strong potential for growth, it will be interesting to see how Ether ETFs perform in the coming year.
Related Articles
- Staking may come soon for US Ether ETFs: Bernstein
- Top Ethereum funds
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