December’s ETF Performance Dominated by Ether
In a year marked by unprecedented growth, ether exchange-traded funds (ETFs) saw their performance overshadowed only by that of Bitcoin BTC ETFs. According to Farside Investors, total net inflows into Ether ETFs surpassed $2.6 billion in December alone, as the funds gained traction against some of the most popular Bitcoin-BTC ETFs available.
November and December: A String of Strong Performance
November and December were months of notable growth for Ether ETFs, with eight straight weeks of net inflows. This run included a record-breaking outperformance by CoinShares, which reported $2.2 billion in net inflows during the week ending November 26.
Lagging Behind Bitcoin
Despite this robust performance, Ether ETFs still lag far behind Bitcoin BTC ETFs, which closed out 2024 with over $35 billion in net inflows according to Farside Investors. Analysts predict that this gap could narrow in 2025, particularly if Ether’s price performance continues to drive returns and regulators approve the generation of yields from staking.
Market Dynamics: Outflows and ETF Comparisons
Grayscale’s Role in the Market
Ether ETFs were complemented by significant inflows as Grayscale launched several products, including the Ether Trust mini trust and other related offerings. However, these inflows were partially offset by notable outflows from [Grayscale’s] ETHE, which the asset manager launched in 2017.
Bitcoin ETFs: A Close Behind
Meanwhile, Bitcoin BTC ETFs also saw strong inflows, with BlackRock’s iShares Bitcoin Trust (IBIT) clocking approximately $37 billion in net inflows for 2024. This outpaced the net outflows of [Grayscale’s] Bitcoin Trust (GBTC), which recorded over $20 billion in outflows during the same period.
Market Sentiment and Performance
Ethereum Outperforms Bitcoin
Since November, Ethereum has outperformed Bitcoin in both spot and derivatives markets, according to a report by Bybit, a leading crypto exchange. This performance is attributed to sustained growth in network activity, fueled in part by the proliferation of AI agents. According to Bitwise’s Matt Hougan, Ethereum and the layer-2 scaling network Base are "where many AI agents are currently operating," further driving their growth trajectory.
Long-Term Outlook
Analysts from firms like VanEck predict that Ethereum may continue its strong performance into 2025, with Ethereum’s spot price expected to reach $41 by the end of next year (Q4 2025).
Conclusion
In summary, 2024 was a year of significant growth for Ether ETFs, driven by strong inflows and outperformance relative to Bitcoin BTC ETFs. While the gap between the two remains substantial, both sectors showed promise for continued expansion in 2025.
For further reading:
- Farside Investors – Full 2024 Market Review
- CoinShares – ETF Performance Details
- VanEck’s Long-Term Outlook
- Bybit’s Ethereum Report
This concludes our exploration of 2024’s market landscape for Ether and Bitcoin ETFs.
