Ethereum ETFs End December With $2.6 Billion Inflows
Date: 2025-01-02 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
Ethereum ETFs saw total net inflows exceed $2.6 billion in December, according to Farside Investors. This is a continuation of a trend that began in November, when ETH funds posted inflows for eight weeks in a row, including a record $2.2 billion in the week of November 26, according to a report from CoinShares.
Despite the impressive growth, these funds remain behind Bitcoin ETFs, which ended 2024 with total inflows of more than $35 billion. However, analysts predict that this could change in 2025 if ETH’s price appreciation improves ETF returns and regulators allow profits to be made through staking.
Among the major players in the Ethereum ETF market, BlackRock's iShares Ethereum Trust (ETHA) stands out, having attracted more than $3.5 billion in 2024. Fidelity's Ethereum Fund (FETH) came in second with an inflow of $1.5 billion.
At the same time, Grayscale funds have been showing an outflow of funds. For example, Grayscale Ethereum Trust (ETHE), launched in 2017, lost about $3.6 billion. In response, the company offered a more accessible instrument in July - Grayscale Ethereum Mini Trust with lower fees.
Similar dynamics were observed among Bitcoin ETFs. BlackRock's iShares Bitcoin Trust (IBIT) has raised around $37 billion, while Grayscale Bitcoin Trust (GBTC) has seen over $20 billion pulled out.
ETH has outperformed BTC in both spot and derivatives markets since November, according to Bybit's report. At the same time, Bitcoin ETFs saw record outflows on December 19.
An additional factor driving Ethereum's growth could be the increased activity on the network due to the use of artificial intelligence. According to Matt Hougan, head of research at Bitwise, "many AI agents are now running on Ethereum and Base, the scaling layer of the Ethereum network."
VanEck estimates that ETH's spot price could reach $6,000 by Q4 2025.
