As Ether ETFs gained ground against the massively popular Bitcoin ETFs, total net inflows into these funds exceeded $2.6 billion in December, according to data Ethereum ETFs Surge from Farside Investors. According to data from CoinShares, Ether ETFs experienced eight consecutive weeks of net inflows in November and December, with a record-breaking $2.2 billion influx on November 26.
Although they concluded 2024 with net inflows of over $35 billion, they remain behind Bitcoin ETFs (BTC ETFs), according to Farside. Analysts say ETH’s price performance might boost ETF returns in 2025, and authorities could even let the funds earn rewards from staking.
BlackRock Tops Ethereum Inflows in 2024
According to Farside, BlackRock’s iShares Ethereum Trust (ETHA) had the highest net inflows of any peer in 2024, with more than $3.5 billion. Second place went to Fidelity Ethereum Fund (FETH), which received $1.5 billion in net inflows. Grayscale Ethereum Trust (ETHE), an unlisted trust that the asset manager established in 2017, saw net outflows of more than $3.6 billion, offsetting some of this.
The management fee for Grayscale’s ETHE is 1.5%. Due to its lower price, the asset manager recommended Grayscale Ethereum Mini Trust in July. Similarly, Bitcoin exchange-traded funds (ETFs) showed a similar tendency, with over $20 billion leaving Grayscale Bitcoin Trust (GBTC) and almost $37 billion entering BlackRock’s iShares Bitcoin Trust (IBIT) in 2024.
ETH Outperforms BTC Amid AI Expansion in 2024
Bybit, a cryptocurrency exchange, said in December that ETH has done better than BTC in the crypto spot and futures markets since November. On the other hand, December 19th marked the largest net outflows ever for Bitcoin ETFs.
According to Bitwise’s head of research, Matt Hougan, who spoke with Cointelegraph, sustained expansion in network activity, including the proliferation of AI agents, might boost Ether’s performance. So far in 2024, Ether has trailed behind rival Layer-1 network Solana.
During an interview with Cointelegraph on December 19, Hougan mentioned that “where many AI agents are currently operating” is on Ethereum and Base, a layer-2 scaling network for Ethereum. The base is a network designed to scale Ethereum.
Final Thoughts
With over $3.5 billion in inflows, BlackRock’s iShares Ethereum Trust was the front-runner among Ethereum ETFs in 2024, which saw tremendous growth. Even if Bitcoin ETFs still have a bigger market share, Ethereum ETFs Surge could do well due to Ether’s price performance and the increased network activity.
Particularly in AI applications. Experts look to Ethereum’s scalability—especially with Ethereum 2.0 and Base—and the possibility of staking rewards to propel the network to new heights in 2025. The rising demand for Ethereum and its enhanced functionality suggest that ETH will have a promising year ahead.
FAQs
How did Ethereum ETFs perform in 2024?
In 2024, Ethereum ETFs saw significant growth, with over $2.6 billion in net inflows in December alone. They experienced eight consecutive weeks of inflows in November and December, culminating in a record $2.2 billion influx.
Which Ethereum ETF had the highest net inflows in 2024?
BlackRock's iShares Ethereum Trust (ETHA) led the pack, with over $3.5 billion in net inflows, the highest among all Ethereum ETFs in 2024.
How does Ethereum ETF performance compare to Bitcoin ETFs?
While Ethereum ETFs saw substantial growth, Bitcoin ETFs still had higher net inflows, with over $35 billion entering Bitcoin ETFs in 2024. However, Ethereum ETFs are gaining ground, driven by ETH’s performance and network activity.
What is the impact of AI expansion on Ethereum’s performance?
The expansion of AI applications, particularly on Ethereum’s network and its layer-2 scaling solution, Base, is expected to boost Ethereum’s performance and increase demand for ETH.
