Ether ETF monthly net inflows hit $2.6B in December

Table of Contents

Introduction

The year 2024 has been a standout year for cryptocurrency-related investments, with ether (ETH) exchange-traded funds (ETFs) emerging as a compelling alternative to the highly popular Bitcoin ETFs. This article explores the performance of ether ETFs in November and December 2024, compares it to that of Bitcoin ETFs, and provides insights into potential developments for 2025.

December 2024 Performance

In December 2024, total net inflows into Ether ETFs surpassed $2.6 billion, marking a significant increase compared to previous months. This outperformance is partly attributed to the growing popularity of ether as an asset among investors seeking alternatives to Bitcoin in 2024.

November-December 2024 Trends

November and December 2024 were characterized by eight consecutive weeks of net inflows into Ether ETFs, with a record-breaking week of $2.2 billion in November alone. This steady increase underscores the rising demand for ether-based investments as compared to Bitcoin.

Analyst Predictions for 2025

Analysts suggest that the performance of Ether ETFs could reverse in 2025, particularly if several factors align: enhanced price performance of ETH (ether), favorable regulatory environments that allow funds to generate yields from staking, and a sustained investor appetite. The potential for growth in network activity, including advancements in artificial intelligence-driven applications on Layer-1 networks like Ethereum, could further support this outlook.

Staking Developments

The adoption of staking for US Ether ETFs is on the horizon, with Bernstein highlighting its importance as a key feature for attracting more investors to these funds. Additionally, BlackRock’s iShares Ethereum Trust (ETHA) has emerged as the leader among peer ETFs, with net inflows exceeding $3.5 billion in 2024.

Bitcoin ETFs’ Performance

In contrast to Ether ETFs, Bitcoin ETFs have lagged behind their ether counterparts. For instance, BlackRock’s iShares Bitcoin Trust (IBIT) saw net inflows of approximately $37 billion in 2024, while Grayscale Bitcoin Trust (GBTC) experienced significant outflows of over $20 billion during the same period.

Will They Outperform Bitcoin ETFs in 2025?

Given that Ethereum has outperformed Bitcoin in both spot and derivatives markets since November 2024, as reported by Bybit, a leading crypto exchange, the stage is set for further growth. Matt Hougan of Bitwise’s research team has highlighted the potential for sustained network activity to drive positive performance, particularly considering the competition from Layer-2 networks like Ethereum (Base), which Grayscale has been utilizing.

Ether Price Projections

Asset manager VanEck estimates that by the fourth quarter of 2025, the spot price of ether could reach $6,000, reflecting ongoing bullish sentiment and expectations for further adoption of layer-2 scaling solutions like Ethereum (Base).