According to data from Farside Investors, the total net inflows into Ether exchange-traded funds (ETFs) surpassed $2.6 billion in December 2024. This significant growth is a testament to the increasing popularity of Ethereum-based ETFs, which are gaining traction against their Bitcoin counterparts.
A Record-Breaking Week for Ether ETFs
In November and December 2024, Ether ETFs experienced eight consecutive weeks of net inflows, including a record-breaking $2.2 billion in the week of November 26. This impressive growth is a significant milestone for Ethereum-based funds, which are slowly but surely closing the gap with their Bitcoin counterparts.
A Comparison to Bitcoin ETFs
While Ether ETFs have seen significant growth, they still lag behind their Bitcoin peers. According to Farside Investors, Bitcoin ETFs closed out 2024 with net inflows of over $35 billion. 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 Performing Ether Funds
According to Farside Investors, BlackRock’s iShares Ethereum Trust (ETHA) led among peers, onboarding over $3.5 billion in 2024 net inflows. Fidelity Ethereum Fund (FETH) notched second place with $1.5 billion in net inflows. However, Grayscale Ethereum Trust (ETHE) saw significant net outflows of over $3.6 billion, partly due to the asset manager’s decision to launch a cheaper alternative, the Grayscale Ethereum Mini Trust.
A Cheaper Alternative for Grayscale Ethereum Trust
In July 2024, Grayscale launched the Grayscale Ethereum Mini Trust as a more cost-effective option for investors. The new trust charges management fees of just 0.75%, significantly lower than the 1.5% charged by ETHE. This move is likely to attract more investors and further reduce net outflows from Grayscale’s flagship Ether fund.
A Similar Dynamic with Bitcoin ETFs
The dynamics observed in the Ethereum market are not unique to Ether-based funds alone. BlackRock’s iShares Bitcoin Trust (IBIT) clocked approximately $37 billion in 2024 net inflows, while Grayscale Bitcoin Trust (GBTC) saw over $20 billion in net outflows.
Will They Outperform Bitcoin ETFs in 2025?
Since November 2024, ETH has outperformed BTC in crypto spot and derivatives markets, according to a December report by Bybit, a leading cryptocurrency exchange. Meanwhile, BTC ETFs saw the biggest net outflows ever on December 19. This trend may continue in 2025, especially if sustained growth in network activity continues.
Sustained Growth in Network Activity
According to Matt Hougan, Bitwise’s head of research, sustained growth in network activity, particularly from the proliferation of 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," Hougan told Cointelegraph.
A Prediction for Ether’s Spot Price
Asset manager VanEck estimates that Ether’s spot price will reach $6,000 by the fourth quarter of 2025. While this prediction may seem ambitious, it highlights the growing optimism surrounding Ethereum’s future prospects.
Conclusion
The growth in net inflows into Ether ETFs is a significant development in the cryptocurrency market. As these funds continue to gain traction, investors are likely to take notice and increase their exposure to Ethereum-based assets. The trend observed in 2024 may be reversed in 2025, especially if ETH’s price performance enhances ETF returns and regulators allow the funds to generate yields from staking.
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