In a significant development for the cryptocurrency market, total net inflows into Ether (ETH) exchange-traded funds (ETFs) surpassed $2.6 billion in December, according to data from Farside Investors. This surge in popularity comes as Ether ETFs have gained traction against their Bitcoin (BTC) counterparts, which saw a notable increase in net inflows in 2024.

A Record-Breaking Month for ETH ETFs

In November and December, Ether ETFs experienced eight consecutive weeks of net inflows, with the week of Nov. 26 seeing a record-breaking $2.2 billion in net inflows. This unprecedented level of interest in Ether ETFs is a testament to the growing confidence of investors in the Ethereum network.

A Tale of Two Giants: ETH vs. BTC

While Ether ETFs have seen significant growth, Bitcoin ETFs continue to lead the pack in terms of net inflows. According to Farside Investors, BTC ETFs closed out 2024 with upward of $35 billion in net inflows. However, analysts predict that this trend may reverse in 2025, particularly if Ether’s price performance enhances ETF returns and regulators allow the funds to generate yields from staking.

Top Performing ETH Funds

BlackRock’s iShares Ethereum Trust (ETHA) led among peers, onboarding upward of $3.5 billion in 2024 net inflows. Fidelity Ethereum Fund (FETH) notched second place with $1.5 billion in net inflows. On the other hand, Grayscale Ethereum Trust (ETHE) saw significant net outflows, totaling upward of $3.6 billion.

The Rise and Fall of Grayscale’s ETHE

Grayscale’s ETHE charges management fees of 1.5%. In July, the asset manager listed Grayscale Ethereum Mini Trust as a cheaper alternative. Despite this, the fund continues to struggle with net outflows. This dynamic is not unique to Ether funds, as Bitcoin ETFs also display a similar trend.

Will ETH Outperform BTC in 2025?

Since November, ETH has outperformed BTC in crypto spot and derivatives markets, according to a December report by Bybit, a crypto exchange. This shift in market dynamics could propel Ether’s performance further, particularly with the proliferation of artificial intelligence agents on the Ethereum network.

The Impact of AI Agents on Ethereum

Matt Hougan, Bitwise’s head of research, believes that sustained growth in network activity, including from the proliferation of AI agents, could further propel Ether’s performance. In an interview with Cointelegraph, Hougan stated that "Ethereum and Base, an Ethereum layer-2 scaling network, are ‘where many AI agents are currently operating’."

A Bright Future for ETH?

Asset manager VanEck estimates Ether’s spot price will reach $6,000 by the fourth quarter of 2025. This projection is based on the growing adoption of Ethereum and its associated ecosystem.

Investor Takeaways

• Total net inflows into Ether ETFs surpassed $2.6 billion in December.
• Ether ETFs have gained traction against Bitcoin ETFs, which saw a notable increase in net inflows in 2024.
• Analysts predict that this trend may reverse in 2025, particularly if Ether’s price performance enhances ETF returns and regulators allow the funds to generate yields from staking.
• BlackRock’s iShares Ethereum Trust (ETHA) led among peers, onboarding upward of $3.5 billion in 2024 net inflows.
• Grayscale Ethereum Trust (ETHE) saw significant net outflows, totaling upward of $3.6 billion.

Related Articles

• Staking may come soon for US Ether ETFs: Bernstein: Read more about the potential impact of staking on Ether ETFs and their returns.
• 5 real use cases for useless memecoins: Explore how cryptocurrencies, even those with limited utility, can still find practical applications.

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