Ethereum ETF to surpass Bitcoin ETF in 2025? Here's the prediction!

Bittime - Total net inflows into Ethereum (ETH) exchange-traded funds (ETFs) reached $3.5 billion in December, surpassing inflows into the hugely popular Bitcoin (BTC) ETF, which recorded $2.6 billion.

Data from Farside Investors shows that Ether ETFs experienced net inflows for eight consecutive weeks, including a record $2.2 billion in the last week of November.

Although the Ethereum ETF still lags behind the Bitcoin ETF, which closed 2024 with net inflows of more than $35 billion, many analysts believe that this trend could change by 2025.

This prediction is based on the potential for Ethereum's price performance to boost ETF returns. If regulators allow the fund to generate returns on stakes, this could be a significant driving factor.

With more and more investors interested in digital assets, especially Ethereum, it is likely that Ethereum ETFs will start attracting more attention and funds.

Also read: Bitcoin (BTC) vs Ethereum (ETH) Comparison You Must Know

Rising Ethereum Fund Inflows

BlackRock's iShares Ethereum Trust (ETHA) leads among Ethereum ETFs with net inflows of $3.5 billion by 2024. In second place, Fidelity Ethereum Fund (FETH) recorded net inflows of $1.5 billion.

However, net outflows of $3.6 billion from Grayscale Ethereum Trust (ETHE) slightly offset this growth. ETHE, which was launched in 2017, charges a management fee of 1.5%, and in July, Grayscale listed Grayscale Ethereum Mini Trust as a cheaper alternative.

Meanwhile, Bitcoin ETFs have also shown similar dynamics. BlackRock's iShares Bitcoin Trust (IBIT) recorded around $37 billion in net inflows by 2024, despite more than $20 billion in net outflows from Grayscale Bitcoin Trust (GBTC).

This suggests that while Bitcoin ETFs still dominate, there is potential for Ethereum ETFs to catch up

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Market Performance and Price Predictions

Since November, Ethereum has outperformed Bitcoin in the crypto spot market and derivatives market. According to Bybit's report, Bitcoin ETFs experienced the largest net outflow on December 19.

Continued growth in Ethereum network activity, including from the proliferation of artificial intelligence agents, could further boost Ether's performance. Matt Hougan, Bitwise's head of research, stated that Ethereum and its layer-2 scaling network, Base, are where many AI agents currently operate.

Asset manager VanEck predicts that Ether's spot price will reach $6,000 by the fourth quarter of 2025. If this prediction proves accurate, then Ethereum ETFs could gain greater traction among investors, potentially surpassing Bitcoin ETFs.

Also read: Top 5 Ethereum Faucets that Give Free ETH

Conclusion: The Future of Ethereum ETFs

With increasing inflows and promising price performance potential, Ethereum ETFs have a chance to surpass Bitcoin ETFs in 2025. While Bitcoin ETFs still dominate the market today, changes in regulation and increased interest in Ethereum could be key factors in this shift.

Investors and analysts will continue to monitor these developments, hoping to see how these two digital assets fare in the growing market. With continued innovation and adoption, the future of Ethereum ETFs looks bright.

FAQ

What is an Ethereum ETF?

An Ethereum ETF is an exchange-traded fund that gives investors exposure to the digital asset Ethereum (ETH). These funds allow investors to buy and sell shares representing ownership of Ethereum without having to own the digital asset directly.

How do the inflows compare between Ethereum ETFs and Bitcoin ETFs?

In 2024, Ethereum ETFs recorded net inflows of $3.5 billion, while Bitcoin ETFs recorded net inflows of more than $35 billion. Although Bitcoin ETFs still dominate, Ethereum ETF inflows show a significant growth trend.

What is the price prediction for Ethereum in 2025?

VanEck asset managers predict that the spot price of Ethereum (ETH) could reach $6,000 by the fourth quarter of 2025. If this prediction proves accurate, it could increase the appeal of Ethereum ETFs among investors.

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References

cointelegraph.com, Ether ETF net inflows hit $2.6B in December, accessed January 2, 2025.

Author: AWW