Ether ETF Sees Record $2.6 Billion Net Inflows in December

As the cryptocurrency market continues to evolve, Ethereum exchange-traded funds (ETFs) have gained significant traction in recent months. According to data from Farside Investors, total net inflows into Ether ETFs surpassed $2.6 billion in December, outpacing their Bitcoin counterparts.

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A Record-Breaking Month for Ether ETFs

In November and December, Ether ETFs experienced eight consecutive weeks of net inflows, including a record-breaking $2.2 billion in the week of November 26. This surge in popularity is attributed to the growing recognition of Ethereum’s potential as a viable investment option.

Ether Lags Behind Bitcoin ETFs

Despite this significant growth, Ether ETFs still lag behind their Bitcoin counterparts. According to Farside Investors, Bitcoin ETFs closed out 2024 with upward of $35 billion in net inflows. However, analysts predict that this trend may reverse in 2025, particularly if Ethereum’s price performance enhances ETF returns and regulators allow the funds to generate yields from staking.

Top Performing Ether Funds

Among the top performing Ether funds, BlackRock’s iShares Ethereum Trust (ETHA) led the pack with upward of $3.5 billion in net inflows in 2024. Fidelity Ethereum Fund (FETH) followed closely with $1.5 billion in net inflows.

Grayscale’s ETHE Sees Significant Outflows

On the other hand, Grayscale’s ETHE saw significant outflows of upward of $3.6 billion in 2024. This is partly due to the asset manager launching a cheaper alternative, Grayscale Ethereum Mini Trust, in July. The high management fees charged by ETHE (1.5%) have likely contributed to this decline.

Bitcoin ETFs Display Similar Dynamic

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

Will Ether Outperform Bitcoin ETFs in 2025?

With Ethereum having outperformed Bitcoin in crypto spot and derivatives markets since November, according to a December report by Bybit, it is possible that Ether may surpass Bitcoin ETFs in 2025. Sustained growth in network activity, including from the proliferation of artificial intelligence agents, could further propel Ether’s performance.

Matt Hougan Weighs In

According to Matt Hougan, Bitwise’s head of research, Ethereum and Base, an Ethereum layer-2 scaling network, are "where many AI agents are currently operating." This highlights the growing importance of Ethereum in the AI space, which could contribute to its increasing popularity.

VanEck Predicts Ether Price

Asset manager VanEck estimates that Ether’s spot price will reach $6,000 by the fourth quarter of 2025. While this is a significant prediction, it remains to be seen whether the market will meet this target.