Ether ETF sees record-breaking $2.6 billion in December net inflows

In a significant development for the cryptocurrency market, total net inflows into Ethereum exchange-traded funds (ETFs) surpassed $2.6 billion in December, according to data from Farside Investors. This marks a notable increase compared to other months and highlights the growing interest in Ether ETFs.

Ether ETFs Gain Traction Against Bitcoin ETFs

In November and December, Ether ETFs saw eight straight weeks of net inflows, including a record-breaking $2.2 billion in the week of Nov. 26. This is according to data from CoinShares, which provides insights into the cryptocurrency market.

Comparison with Bitcoin ETFs

While Ether ETFs are gaining traction, they still lag behind Bitcoin ETFs, which closed out 2024 with upward of $35 billion in net inflows, according to Farside Investors. 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

BlackRock’s iShares Ethereum Trust (ETHA) led among peers, onboarding upward of $3.5 billion in 2024 net inflows, Farside said. Fidelity Ethereum Fund (FETH) notched second place with $1.5 billion in net inflows.

Grayscale’s ETHE: A Cheaper Alternative

This was partly offset by upward of $3.6 billion in net outflows from Grayscale Ethereum Trust (ETHE), which the asset manager launched in 2017, initially as a non-listed trust. Grayscale’s ETHE charges management fees of 1.5%. In July, the asset manager listed Grayscale Ethereum Mini Trust as a cheaper alternative.

Bitcoin ETFs Display Similar Dynamic

Bitcoin ETFs displayed a similar dynamic, with BlackRock’s iShares Bitcoin Trust (IBIT) clocking approximately $37 billion in 2024 net inflows against more than $20 billion in net outflows from Grayscale Bitcoin Trust (GBTC).

Will Ether ETFs Outperform Bitcoin ETFs in 2025?

Since November, ETH has outperformed BTC in crypto spot and derivatives markets, according to a December report by Bybit, a crypto exchange. Meanwhile, BTC ETFs saw the biggest net outflows ever on Dec. 19.

Sustained Growth in Network Activity

Sustained growth in network activity, including from the proliferation of artificial intelligence agents, could further propel Ether’s performance, which has lagged behind rival layer-1 network Solana in 2024, Matt Hougan, Bitwise’s head of research, told Cointelegraph.

Ethereum and Base: The Future of AI

"Ethereum and Base, an Ethereum layer-2 scaling network, are ‘where many AI agents are currently operating,’ Hougan told Cointelegraph in a Dec. 19 interview."

VanEck’s Prediction for Ether’s Spot Price

Asset manager VanEck estimates Ether’s spot price will reach $6,000 by the fourth quarter of 2025.

Conclusion

The growing interest in Ether ETFs and their potential to outperform Bitcoin ETFs in 2025 are significant developments for the cryptocurrency market. As regulators allow the funds to generate yields from staking, analysts predict that this trend may reverse, leading to increased adoption and growth in network activity.

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