As the cryptocurrency market continues to experience wild price fluctuations, a growing number of investors are turning their attention towards Ethereum (ETH) exchange-traded funds (ETFs). According to data from Farside Investors, total net inflows into Ether ETH ETFs surpassed $2.6 billion in December, outpacing the popularity of Bitcoin BTC ETFs.
Ethereum ETFs See Eight Consecutive Weeks of Net Inflows
In November and December, Ether ETFs experienced a remarkable eight consecutive weeks of net inflows, with a record-breaking $2.2 billion flowing into the funds during the week of November 26. Despite this surge in popularity, Ethereum ETFs still trail behind Bitcoin BTC ETFs, which closed out 2024 with upward of $35 billion in net inflows.
Analysts Predict Reversal in 2025
Industry analysts predict that the tables could turn in favor of Ether ETFs in 2025, particularly if ETH’s price performance improves and regulators allow the funds to generate yields from staking. "We expect this trend to reverse in 2025 as Ether’s price outperforms Bitcoin," said Matt Hougan, Bitwise’s head of research.
Top Performing Ethereum Funds
According to Farside Investors, BlackRock’s iShares Ethereum Trust (ETHA) led the pack 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. In contrast, Grayscale Ethereum Trust (ETHE), which has been a flagship product for Grayscale since its launch in 2017, saw upward of $3.6 billion in net outflows.
Why Ether ETFs May Outperform Bitcoin
So why are Ether ETFs gaining traction? One reason is that ETH has outperformed BTC in crypto spot and derivatives markets since November, according to a December report by Bybit, a leading cryptocurrency exchange. Meanwhile, Bitcoin ETFs have seen significant net outflows, 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).
Sustained Growth in Network Activity to Boost Ether
The sustained growth in network activity, particularly from the proliferation of artificial intelligence agents, is expected to further propel Ether’s performance. According to Hougan, Ethereum and Base, an Ethereum layer-2 scaling network, are "where many AI agents are currently operating."
VanEck Predicts ETH Price to Reach $6,000 by Q4 2025
Asset manager VanEck estimates that Ether’s spot price will reach $6,000 by the fourth quarter of 2025. While this prediction remains speculative, it highlights the growing confidence in Ethereum’s potential.
Conclusion
As the cryptocurrency market continues to evolve, one thing is clear: Ethereum ETFs are gaining traction and may outperform Bitcoin ETFs in 2025. With sustained growth in network activity and improving price performance, Ether investors are poised for significant gains. Will you be among them?
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