In a significant development, the total net inflows into Ether (ETH) exchange-traded funds (ETFs) have surpassed $2.6 billion in December, indicating growing investor interest in the asset. This trend marks a notable shift against Bitcoin (BTC) ETFs, which have seen a relatively slower pace of growth.
Eight Consecutive Weeks of Net Inflows for ETH ETFs
According to data from Farside Investors, Ether ETFs witnessed eight consecutive weeks of net inflows in November and December. The most significant week was between Nov. 26 and Dec. 3, during which the funds saw a record-breaking $2.2 billion in net inflows. This surge is attributed to the growing popularity of ETH as an investment option.
BTC ETFs Still Dominate, But Could ETH Reverse the Trend in 2025?
Although Ether ETFs are gaining traction, they still lag behind BTC ETFs in terms of total net inflows. As of December 2024, Bitcoin ETFs had closed out with a staggering $35 billion in net inflows. 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 Ether Funds Attract Significant Investment
According to Farside Investors, BlackRock’s iShares Ethereum Trust (ETHA) led among its peers in terms of net inflows, onboarding a whopping $3.5 billion in 2024. The Fidelity Ethereum Fund (FETH) followed closely with $1.5 billion in net inflows.
Grayscale’s ETHE Sees Significant Net Outflows
In contrast, Grayscale’s Ethereum Trust (ETHE), which was launched in 2017 as a non-listed trust, witnessed significant net outflows of around $3.6 billion. This is partly due to the existence of cheaper alternatives, such as the Grayscale Ethereum Mini Trust, which was listed in July with lower management fees.
Why ETH Could Outperform BTC ETFs in 2025
As it stands, Ether has outperformed Bitcoin in crypto spot and derivatives markets since November, according to a December report by Bybit. This trend could continue or even accelerate due to sustained growth in network activity, including the proliferation of artificial intelligence agents operating on Ethereum.
Artificial Intelligence Agents Drive Network Activity
Matt Hougan, Bitwise’s head of research, attributes this growth to the increasing presence of AI agents on the Ethereum network. In an interview with Cointelegraph on December 19, Hougan noted that:
"Ethereum and Base, an Ethereum layer-2 scaling network, are ‘where many AI agents are currently operating.’ This could further propel Ether’s performance, which has lagged behind rival layer-1 network Solana in 2024."
Predictions for ETH’s Price Performance
According to asset manager VanEck, Ether’s spot price is expected to reach $6,000 by the fourth quarter of 2025.
What This Means for Investors
The rising net inflows into ETH ETFs indicate growing investor interest in Ethereum. As the cryptocurrency market continues to evolve, it will be essential to monitor regulatory developments and their impact on staking yields. With AI agents driving network activity and potentially enhancing performance, Ether could outperform BTC ETFs in 2025.
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