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    Ether ETFs see rising inflows, poised to outpace Bitcoin ETFs by 2025

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    Ether exchange-traded funds (ETFs) are experiencing increasing inflows, which experts suggest could outperform Bitcoin ETFs by 2025. These inflows reached a record $2.2 billion in the week of November 26th. As Ether’s price continues to rise and regulators potentially allow staking, the trend is expected to continue and even accelerate. Bitcoin ETFs experienced their largest ever net outflows on December 19th while Ether ETFs have kept pace with gold ETFs. Moreover, VanEck predicts that Ether’s price will reach $6,000 by the end of 2025 and could generate $66 billion in annual free cash flow by 2030.

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    More and more money is pouring into Ether (ETH) exchange-traded funds (ETFs), and the trend suggests they might even outshine Bitcoin (BTC) ETFs by 2025, experts say. Ether ETFs experienced seven back-to-back weeks of net money inflows as of December 16, hitting an all-time high of $2.2 billion during the week of November 26, according to CoinShares data.

    Analysts think this rise will carry on until 2025, especially if Ether’s price continues to skyrocket, boosting ETF returns, and if regulators allow these funds to make money from staking. Ether ETFs are currently keeping pace with gold ETFs, but inflows are expected to speed up from this point, said Nate Geraci, president of The ETF Store, in a post on December 20.

    Since November, Ether has been outdoing Bitcoin in the crypto market, and Bitcoin ETFs had their largest ever net outflows on December 19. Continuous growth in network usage, including from the spread of artificial intelligence agents, could boost Ether, which lagged behind Solana (SOL) in 2024, according to Matt Hougan, Bitwise’s head of research.

    Ethereum and Base, one of Ethereum’s scaling networks, are where many AI agents are currently hosted, added Hougan. While many people believe this is happening on Solana, a lot of it is actually taking place within the Ether ecosystem.

    In other news, asset manager VanEck thinks Ether’s price will hit $6,000 by the end of 2025. It estimates that the Ethereum network could generate $66 billion in free cash flow annually by 2030, pushing Ether’s price to a lofty $22,000.

    Over in the United States, there might soon be staking yield on Ether ETFs, says Bernstein Research. Staking means putting Ether as collateral with a validator on the Ethereum network to earn payouts in Ether from network fees and bonuses, but there’s a risk of losing the collateral if the validator messes up. As of December 20, staking Ether provides around 3.35% in annual returns (APR), paid in Ether, as per StakingRewards.com.

    “I believe we’ll see staking investigated and potentially applied in the ETF space in the US,” Hougan added. On December 19, the US Securities and Exchange Commission (SEC) greenlit two ETFs, which are based on a market-weighted index of Bitcoin and Ether, paving another potential means to increase Ether fund inflows.

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