Net inflows into Ethereum ETF reached $2.6 billion in December

Ethereum exchange-traded funds (ETFs) ended December with more than $2.6 billion in net inflows, demonstrating increased investor interest, according to Farside Investors. This result allowed the Ethereum ETF to significantly strengthen its position compared to the market leaders Bitcoin ETFs.

As noted by CoinShares, from November to December, Ethereum funds showed positive dynamics for eight weeks in a row. Particularly notable was the period ending November 26, when net inflows reached a record $2.2 billion. However, by the end of 2024, Ethereum ETFs still lag behind Bitcoin ETFs, whose total inflows exceeded $35 billion.

Analysts predict that the situation may change as early as 2025. The potential for improved Ethereum price performance and possible regulatory approval of staking yields could significantly increase the appeal of Ethereum ETFs.

Among all Ethereum funds, BlackRock’s iShares Ethereum Trust (ETHA) has shown the most success in 2024, attracting over $3.5 billion. Fidelity Ethereum Fund (FETH) came in second, recording net inflows of $1.5 billion. However, the overall position was somewhat weakened by over $3.6 billion in outflows from Grayscale Ethereum Trust (ETHE). The latter was launched in 2017 as an unlisted trust and continues to charge a 1.5% management fee.

To reduce outflows, Grayscale introduced a more affordable option in July, the Ethereum Mini Trust, which helped to partially mitigate the impact of high costs.

Bitcoin ETFs, in turn, have also shown mixed results. BlackRock iShares Bitcoin Trust (IBIT) has raised about $37 billion in 2024, while Grayscale Bitcoin Trust (GBTC) has lost more than $20 billion in net worth.

Ethereum has surpassed Bitcoin in spot and derivatives markets since November 2024, according to data from the Bybit exchange. At the same time, the largest outflow of funds from the Bitcoin ETF was recorded on December 19, highlighting the growing interest of investors in alternative assets.

Asset manager VanEck predicts that the spot price of Ethereum could reach $6,000 by Q4 2025.