Ether ETFs poised to surge in 2025, analysts say
2024-12-21
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Net inflows into Ether ETHUSD exchange-traded funds (ETFs) are gaining momentum and could outperform Bitcoin BTCUSD ETFs in 2025, analysts say. 
As of Dec. 16, Ether ETFs have seen seven straight weeks of net inflows, including a record-breaking $2.2 billion in the week of Nov. 26, according to data from CoinShares. 
Analysts expect this uptrend to continue into 2025, especially if strong spot ETH price performance enhances ETF returns and regulators allow the funds to generate yields from staking. 
Net inflows into ETH ETFs are “currently on pace w/ gold [ETFs], but I expect inflows to accelerate from here,” Nate Geraci, president of The ETF Store, said in a Dec. 20 post on the X platform.
Price outperformance
Since November, ETH has outperformed BTC in crypto spot and derivatives markets, according to a December report by Bybit, a crypto exchange. Meanwhile, BTC ETFs saw the biggest net outflows ever on Dec. 19. 
Sustained growth in network activity, including from the proliferation of artificial intelligence agents, could further propel Ether’s performance, which has lagged rival layer-1 network Solana SOLUSD in 2024, Matt Hougan, Bitwise’s head of research, told Cointelegraph. 
Ethereum and Base, one of Ethereum’s layer-2 scaling networks, are “where many AI agents are currently operating,” Hougan told Cointelegraph in a Dec. 19 interview.
Meanwhile, asset manager VanEck estimates Ether’s spot price will reach $6,000 by the fourth quarter of 2025. 
The asset manager expects the Ethereum network to generate up to $66 billion in annual free cash flow by 2030, driving spot ETH’s price as high as $22,000.
Staking in ETFs
US-based Ether ETFs may soon feature staking yield, Bernstein Research said in a December report. 
Staking involves locking up ETH as collateral with a validator on the Ethereum network. Stakers earn ETH payouts from network fees and other rewards but risk “slashing” — or losing ETH collateral — if the validator misbehaves.
As of Dec. 20, staking Ether earns roughly 3.35% in annualized percentage returns (APR), denominated in ETH, according to StakingRewards.com.
“On ETH staking, I think it’s a reasonable bet that we’ll see it investigated and potentially applied in the ETF space” in the US, Hougan said. 
On Dec. 19, the US Securities and Exchange Commission (SEC) simultaneously approved two ETFs comprising a market-weighted index of BTC and ETH, creating another potential avenue to boost ETH fund inflows. 