Ethereum exchange-traded funds (ETFs) are attracting attention with a net inflow of $2.6 billion during this period when interest in cryptocurrencies is increasing.
The performance of Ether ETFs is quite impressive, especially when compared to Bitcoin ETFs, which closed 2024 with net inflows exceeding $35 billion.
“Sustained growth seen in Ethereum ETFs could signal a possible shift in investor sentiment,” one CoinShares analyst noted.
This article will examine the recent increase observed in Ether ETFs, provide a comparative analysis with Bitcoin ETFs, and discuss the possible impacts towards 2025.
Ethereum ETFs Compete with Bitcoin
Towards the end of 2024, the rapidly increasing inflows of Ethereum ETFs have attracted the attention of investors and market analysts. The total net inflows into ETH ETFs in December exceeded $2.6 billion, clearly showing the interest in Ethereum. According to data from Farside Investors, Ethereum funds have recorded continuous net inflows for eight weeks, with a record inflow of $2.2 billion in the week ending November 26. This rise has also fueled discussions about whether Ethereum can close the gap with Bitcoin ETFs.
Benchmark: The Rise and Challenges of Ethereum ETFs
While Ethereum ETFs have seen significant growth, they are lagging behind Bitcoin ETFs, which closed 2024 with over $35 billion in net inflows. Analysts note that market sentiment, performance metrics, and potential regulatory changes will play a critical role in the future of Ether ETFs. The increasing popularity of staking rewards could further increase the appeal of Ethereum funds if regulators approve the use of staking.
Featured Ethereum Funds and Their Market Impact
One of the leading funds among Ethereum ETFs is BlackRock’s iShares Ethereum Trust (ETHA), which saw net inflows exceeding $3.5 billion through 2024. The Fidelity Ethereum Fund (FETH) followed, raising $1.5 billion. However, the overall picture for Ethereum ETFs is mixed, with Grayscale Ethereum Trust (ETHE) seeing net outflows of around $3.6 billion due to management fee concerns and competing alternatives like the newly launched Grayscale Ethereum Mini Trust.
Possible Changes: 2025 Performance Expectations
As we approach 2025, the question of whether Ethereum ETFs can outperform Bitcoin has begun to come to the fore. Bybit’s December report emphasized that Ethereum has shown strong performance in recent months, especially in spot and derivative markets. The robustness of the Ethereum network, supported by artificial intelligence developments, keeps Ether in an advantageous position against its predecessor Solana throughout 2024. Asset manager VanEck predicts that if current trends continue, Ether’s price target could reach $6,000 in the fourth quarter of 2025.