Ether ETF Net Inflows Reach $2.6 Billion in December

According to data from Farside Investors, Ethereum exchange-traded funds (ETFs) witnessed a significant surge in net inflows in December, surpassing the $2.6 billion mark. This marks an unprecedented trend for Ether ETFs, which have been gaining traction against their Bitcoin counterparts.

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A Record-Breaking Week for Ether ETFs

In November and December, Ether ETFs experienced eight straight weeks of net inflows, with a record-breaking $2.2 billion in the week of Nov. 26, according to data from CoinShares. While this is a notable achievement, it’s essential to note that Ether ETFs still lag behind Bitcoin ETFs in terms of net inflows.

Bitcoin ETFs Outshine Ethereum Counterparts

As per Farside Investors’ data, Bitcoin ETFs closed out 2024 with over $35 billion in net inflows. Analysts suggest 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, with over $3.5 billion in net inflows in 2024. Fidelity Ethereum Fund (FETH) followed closely with $1.5 billion in net inflows.

Grayscale’s ETHE: A Cheaper Alternative?

Interestingly, Grayscale Ethereum Trust (ETHE), launched in 2017 as a non-listed trust, saw significant net outflows of over $3.6 billion. This was partly offset by the introduction of Grayscale Ethereum Mini Trust as a cheaper alternative in July.

Will Ether Outperform Bitcoin in 2025?

Since November, ETH has consistently outperformed BTC in crypto spot and derivatives markets, according to a December report by Bybit. Meanwhile, BTC ETFs witnessed massive net outflows on Dec. 19. Experts believe that sustained growth in network activity, including from the proliferation of artificial intelligence agents, could propel Ether’s performance even further.

Matt Hougan’s Insights

Matt Hougan, Bitwise’s head of research, shared his thoughts on Ethereum’s potential in a December interview with Cointelegraph: "Ethereum and Base, an Ethereum layer-2 scaling network, are ‘where many AI agents are currently operating.’ This could be a significant factor in driving Ether’s performance forward."

VanEck’s Price Predictions

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

Conclusion

The surge in net inflows for Ethereum ETFs is an exciting development, especially considering their potential to outperform Bitcoin counterparts. As regulators continue to navigate the complexities of staking and yield generation, it will be fascinating to see how Ether’s performance unfolds in the coming months. Will the trend reverse in 2025? Only time will tell.

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