As a seasoned crypto investor with a knack for spotting trends and a portfolio that has weathered several market cycles, I find the recent surge in Ether ETF inflows quite intriguing. Having closely followed the crypto space since its inception, I’ve seen Bitcoin (BTC) dominate the landscape, but Ethereum (ETH) seems to be gaining traction, especially in ETF form.
The record-breaking net inflows into Ether ETFs in November and December are a testament to the growing interest in this digital asset. While BTC ETFs still hold the lead, the gap is narrowing, and I believe we might see a reversal next year if regulators allow Ethereum ETFs to generate yields from staking.
BlackRock’s iShares Ethereum Trust (ETHA) has been leading the pack, onboarding billions in 2024 net inflows. It’s interesting to see the dynamic between the top players, with some gaining momentum while others are experiencing outflows. Grayscale Ethereum Trust (ETHE), for instance, saw significant outflows, but this seems to be a trend across Bitcoin ETFs as well, with GBTC experiencing similar outflows.
The recent performance of ETH compared to BTC in crypto spot and derivatives markets is particularly noteworthy. If this trend continues, we might see Ethereum ETFs outperforming their Bitcoin counterparts in 2025. Sustained growth in network activity, especially from the proliferation of AI agents, could further boost Ethereum’s performance.
VanEck’s estimate of Ether’s spot price reaching $6,000 by Q4 2025 is quite ambitious, but considering the pace at which things are moving in the crypto space, it’s not entirely implausible.
In a jest, I’d say, “I’ve been investing in crypto for so long, I remember when Satoshi Nakamoto was still mining Bitcoins with his laptop! But who knows, maybe by 2030, we’ll be talking about Ether 100K!
In December, the total amount invested in Ether (ETH) exchange-traded funds (ETFs) exceeded $2.6 billion, outpacing Bitcoin (BTC) ETFs which are widely popular. This information is based on data provided by Farside Investors.
Over the course of November and December, I’ve noticed a consistent trend with Ethereum Exchange Traded Funds (ETFs); they’ve experienced eight consecutive weeks of net inflows. In fact, during the week of Nov. 26, an astounding $2.2 billion flowed into these ETFs, setting a new record. These insights are based on data from CoinShares.
2024 saw Bitcoin ETFs surpass other investments, as they accumulated more than $35 billion in total inflows at the end of the year, based on data from Farside.
Experts predict a potential reversal by 2025, particularly if the performance of ETH on the spot market significantly boosts the returns of ETH-based ETFs. Moreover, if regulators permit these funds to earn income through staking, this could further contribute to the reversal.
Top Ethereum funds
In 2024, BlackRock’s iShares Ethereum Trust (ETHA) saw the highest inflow among its peers, bringing in approximately $3.5 billion. The Fidelity Ethereum Fund (FETH) came in second with $1.5 billion in net inflows. According to Farside.
As a crypto investor, I noticed that while some gains were made, they were partially offset by approximately $3.6 billion in net outflows from the Grayscale Ethereum Trust (ETHE). This trust, which Grayscale introduced back in 2017, initially as an unlisted trust, has seen a significant withdrawal of funds.
5% is the fee charged by Grayscale for managing its ETHE product. However, in July, they introduced the Grayscale Ethereum Mini Trust as a less expensive option.
As a crypto investor, I’ve noticed an intriguing pattern with Bitcoin ETFs. For instance, BlackRock’s iShares Bitcoin Trust (IBIT) saw a staggering $37 billion inflow in 2024 compared to the more than $20 billion outflow from Grayscale Bitcoin Trust (GBTC). This suggests a shift in investor preference towards IBIT over GBTC.
Will they outperform Bitcoin ETFs in 2025?
As a crypto investor, I’ve noticed an interesting shift since November. Ethereum (ETH) has been outperforming Bitcoin (BTC) in both spot and derivatives markets, as reported by Bybit, a prominent crypto exchange. Interestingly, this period also saw the largest net outflows ever from Bitcoin ETFs on December 19.
Continued increase in network engagement, particularly driven by the expansion of artificial intelligence entities, could potentially boost Ether’s progression. Notably, Ether has shown slower performance compared to the layer-1 network Solana in 2024, according to Matt Hougan, head of research at Bitwise, as reported by CryptoMoon.
In the interview with CryptoMoon on December 19th, Hougan stated that Ethereum and Base, a scaling network on Ethereum’s layer-2, are “currently the primary environments where numerous AI agents are functioning.
Asset manager VanEck estimates Ether’s spot price will reach $6,000 by the fourth quarter of 2025.
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2025-01-01 22:43