Ether ETF Sees $2.6 Billion in Net Inflows for December Month

In December 2024, the total net inflows into Ethereum (ETH) exchange-traded funds (ETFs) surpassed $2.6 billion, marking a significant milestone for the cryptocurrency’s fund market. This achievement comes on the heels of eight consecutive weeks of net inflows in November and December, with a record-breaking $2.2 billion in the week of November 26, according to data from CoinShares.

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Ether ETFs Lag Behind Bitcoin ETFs but Show Promise

While Ether ETFs have gained traction in recent months, they still lag behind their Bitcoin (BTC) counterparts, which closed out 2024 with upward of $35 billion in net inflows. However, analysts predict that this trend could reverse in 2025, particularly 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 upward of $3.5 billion in 2024 net inflows. Fidelity Ethereum Fund (FETH) notched second place with $1.5 billion in net inflows.

Grayscale’s ETHE: A Cheaper Alternative?

Grayscale Ethereum Trust (ETHE), launched in 2017 as a non-listed trust, saw upward of $3.6 billion in net outflows in 2024. The asset manager had listed Grayscale Ethereum Mini Trust in July as a cheaper alternative, with lower management fees. Despite this, ETHE still charges a management fee of 1.5%.

Similar Dynamics for Bitcoin ETFs

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 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 December 19.

Sustained Growth in Network Activity

Matt Hougan, Bitwise’s head of research, told Cointelegraph that sustained growth in network activity could further propel Ether’s performance. He noted that Ethereum and Base, an Ethereum layer-2 scaling network, are "where many AI agents are currently operating."

ETH Price Prediction

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

Conclusion

In conclusion, the recent surge in net inflows into Ether ETFs is a significant development for the cryptocurrency’s fund market. While these funds still lag behind their Bitcoin counterparts, analysts predict that this trend could reverse in 2025. With sustained growth in network activity and ETH outperforming BTC in crypto markets, the future looks promising for Ethereum-based investments.