Ether exchange-traded funds (ETFs) made significant strides in December, recording over $2.6 billion in net inflows, according to Farside Investors. This growth highlights the increasing appeal of Ether ETFs, which are gaining momentum alongside their Bitcoin counterparts.
December’s performance capped eight consecutive weeks of net inflows for Ether ETFs, including a record-breaking $2.2 billion during the week of November 26, as reported by CoinShares. While Bitcoin ETFs still dominate with $35 billion in net inflows for 2024, analysts believe Ether ETFs could close the gap in 2025, driven by stronger price performance and potential regulatory approval for staking-based yields.
BlackRock and Fidelity Lead the Ether ETF Market
In 2024, BlackRock’s iShares Ethereum Trust (ETHA) stood out among other Ether ETFs with net inflows of 3.5 billion dollars. It was followed by Fidelity’s Ethereum Fund (FETH) which managed to secure 1.5 billion dollars. Nevertheless, this increase was mostly counterbalanced by outflows recorded in the Grayscale Ethereum Trust (ETHE) which had 3.6 billion dollars worth of net redemptions.
Grayscale has struggled to keep investors engaged. ETHE has a management fee of 1.5 % however the asset manager rolled out the Grayscale Ethereum Mini Trust in July, to offer a cheaper option as it develops its waistline.
The bitcoin themed exchange traded funds (ETFs) followed a similar pattern, with the BlackRock iShares bitcoin Trust (IBIT) topping its class with 37 billion dollars of net inflows, while Grayscale’s Bitcoin Trust (GBTC) experienced net outflows of upwards of 20 billion dollars over the year.
Ether’s Rise in 2025
As reported by Bybit in December, Ether has performed better than Bitcoin in the spot and derivatives markets. This momentum trend aligns with the increasing activity of network participants and can further advance Ether in the market. Staking and the rise of artificial intelligence in 2025 will be the attractions the asset market needs.