Ether ETF Sees Record-Breaking Net Inflows of $2.6 Billion in December

In a significant development for the cryptocurrency market, total net inflows into Ether exchange-traded funds (ETFs) exceeded $2.6 billion in December, outpacing those of their Bitcoin counterparts. According to data from Farside Investors, this surge in popularity can be attributed to the growing interest in Ethereum as an investment opportunity.

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A Record-Breaking Month for Ether ETFs

In November and December, Ether ETFs witnessed eight consecutive weeks of net inflows, with a record-breaking $2.2 billion pouring into these funds during the week of November 26. This impressive performance is a testament to the growing confidence in Ethereum as a solid investment choice.

While Bitcoin ETFs still maintain a significant lead, with over $35 billion in net inflows for the year, Ether ETFs are closing the gap rapidly. Analysts predict that this trend may reverse in 2025, particularly if Ethereum’s price performance enhances ETF returns and regulators allow these funds to generate yields from staking.

Top Performing Ether Funds

BlackRock’s iShares Ethereum Trust (ETHA) emerged as a top performer among its peers, with net inflows exceeding $3.5 billion for the year. Fidelity Ethereum Fund (FETH) followed closely, notching $1.5 billion in net inflows.

However, Grayscale Ethereum Trust (ETHE), launched in 2017, experienced significant net outflows of over $3.6 billion. This can be attributed to the higher management fees charged by the asset manager, which stands at 1.5%. In response to this, Grayscale listed its Ethereum Mini Trust as a more affordable alternative.

A Similar Dynamic for Bitcoin ETFs

Bitcoin ETFs also displayed a similar dynamic, with BlackRock’s iShares Bitcoin Trust (IBIT) recording approximately $37 billion in net inflows against over $20 billion in net outflows from Grayscale Bitcoin Trust (GBTC).

Will Ether ETFs Outperform Bitcoin ETFs in 2025?

Since November, Ethereum has consistently outperformed Bitcoin in the crypto spot and derivatives markets, according to a December report by Bybit. Meanwhile, BTC ETFs witnessed their largest net outflows on record on December 19.

Experts believe that sustained growth in network activity, particularly from artificial intelligence agents, could further propel Ether’s performance. Matt Hougan, Bitwise’s head of research, noted that Ethereum and Base, an Ethereum layer-2 scaling network, are currently home to many AI agents operating.

A Bright Future for Ethereum?

Asset manager VanEck estimates that Ether’s spot price will reach $6,000 by the fourth quarter of 2025. This prediction highlights the growing optimism surrounding Ethereum’s future prospects.

In conclusion, the surge in popularity of Ether ETFs is a clear indication of the growing interest in Ethereum as an investment opportunity. As the market continues to evolve, it will be interesting to see whether these funds can maintain their momentum and potentially outperform Bitcoin ETFs in 2025.

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