In December 2024, the total net inflows into Ether (ETH) exchange-traded funds (ETFs) reached a staggering $2.6 billion, as these funds gained momentum against their wildly popular Bitcoin (BTC) counterparts. This trend is in line with data from Farside Investors, which highlights the growing interest in ETH ETFs.
Eight Straight Weeks of Net Inflows for Ether ETFs
According to CoinShares, Ether ETFs experienced eight consecutive weeks of net inflows in November and December 2024, including a record-breaking $2.2 billion in the week of November 26. This surge in popularity is a significant development in the world of cryptocurrency investing.
Net Inflows into BTC ETFs Remain Higher
Despite Ether ETFs’ impressive performance, Bitcoin ETFs still lead in terms of net inflows, with over $35 billion in December 2024 alone, according to Farside Investors. However, analysts believe that this gap may narrow in 2025, particularly if ETH’s price performance enhances ETF returns and regulators allow the funds to generate yields from staking.
Top Ether Funds: BlackRock and Fidelity Lead the Charge
Among Ether ETFs, BlackRock’s iShares Ethereum Trust (ETHA) takes the lead, with a significant $3.5 billion in 2024 net inflows, according to Farside Investors. Fidelity Ethereum Fund (FETH) follows closely, with $1.5 billion in net inflows.
Grayscale’s ETHE Experiences Significant Net Outflows
However, Grayscale’s Ethereum Trust (ETHE) faces a different scenario, experiencing over $3.6 billion in net outflows in 2024. This is partly due to the fund’s management fees of 1.5%. In July 2024, the asset manager listed Grayscale Ethereum Mini Trust, a cheaper alternative that may attract more investors.
Bitcoin ETFs: A Similar Dynamic
Similar to Ether ETFs, Bitcoin ETFs exhibit a similar dynamic, with BlackRock’s iShares Bitcoin Trust (IBIT) clocking approximately $37 billion in 2024 net inflows against over $20 billion in net outflows from Grayscale Bitcoin Trust (GBTC).
Will Ether ETFs Outperform BTC ETFs in 2025?
Since November, ETH has outperformed BTC in crypto spot and derivatives markets, according to a December report by Bybit, a leading cryptocurrency exchange. Meanwhile, BTC ETFs experienced the biggest net outflows ever on December 19.
Ethereum’s Network Activity Continues to Grow
The sustained growth in Ethereum’s network activity, including from the proliferation of artificial intelligence agents, could further propel Ether’s performance. According to Matt Hougan, Bitwise’s head of research, "Ethereum and Base, an Ethereum layer-2 scaling network, are ‘where many AI agents are currently operating.’"
Ether’s Price: A $6,000 Forecast by VanEck
Asset manager VanEck estimates that Ether’s spot price will reach $6,000 by the fourth quarter of 2025. This forecast highlights the growing interest in ETH and its potential for future growth.
Conclusion
The rise of Ether ETFs is a significant development in the world of cryptocurrency investing. With sustained growth in network activity and increased adoption, it is likely that these funds will continue to gain traction against their BTC counterparts. As we move into 2025, investors would do well to keep an eye on ETH’s performance and its potential for future growth.
Sources:
- Farside Investors
- CoinShares
- Bybit
- Cointelegraph
