In December 2024, Ethereum ETFs made a remarkable splash, attracting $2.6 billion in net inflows. This impressive figure highlights an increasing appetite for these crypto investment solutions, even as they continue to trail behind Bitcoin ETFs, which finished the year with a staggering $35 billion in inflows.
The trend for Ethereum ETFs has been climbing steadily, with reports indicating that they enjoyed eight consecutive weeks of net inflows during November and December 2024. The week of November 26 marked a high point, with a stunning $2.2 billion influx. Among the various funds available, the iShares Ethereum Trust (ETHA), offered by BlackRock, led the pack, pulling in over $3.5 billion in net inflows throughout the year. Following closely was the Fidelity Ethereum Fund (FETH), which attracted $1.5 billion. In contrast, the Grayscale Ethereum Trust (ETHE) had a rougher time, experiencing net outflows of $3.6 billion.
Looking ahead to 2025, this momentum could accelerate. Analysts suggest that improvement in ETH price performance might bolster ETF returns, and there’s optimism around potential regulatory changes that could allow funds to gain yields from staking. Notably, since November, ETH has outperformed BTC in both the spot and derivatives markets. A December report from Bybit also pointed out that increased activity within the Ethereum network—driven partly by the rise of artificial intelligence agents—could further benefit Ether’s performance.
Crypto experts are predicting an even brighter future, estimating that the price of Ethereum could soar to $6,000 by the end of 2025. This optimistic vision is reinforced by the growing engagement with the Ethereum network and its Base, a layer-2 scaling solution that has become quite popular among AI applications.
The extraordinary net inflows into Ethereum ETFs by December 2024 signify a bolstering institutional confidence in Ethereum. If this trend persists, we may see ETH challenging BTC for dominance in both popularity and market performance as we progress through 2025. What a time to be in the crypto space!
