Analysts say that Ether ETFs are set to rise in 2025
Analysts say Bitcoin (BTC) could surpass ETFs by 2025 as inflows into Ether (ETH) exchange-traded funds (ETFs) increase.
Since Dec. 16, Ether ETFs have seen seven consecutive weeks of net inflows, including a record-breaking $2.2 billion in Nov. 26, according to data from CoinShares.
Analysts expect this growth to continue through 2025, especially if strong spot ETH price performance boosts ETF income and regulators allow it to generate funds from stocks.
Net inflows into ETH ETFs are “currently at the speed of gold. [ETFs]But I expect income streams to accelerate from here,” ETFStore president Nate Geraci said in a Dec. 20 post on the X Forums.
Source: Nate Gerasi
Related: Staking May Be Coming Soon to US Ether ETFs: Bernstein
Price difference
Since November, ETH has surpassed BTC in the crypto spot and derivatives markets, according to a December report by Bybit, the crypto exchange. Meanwhile, BTC ETFs saw the largest net inflow on December 19.
Continued growth in network activity, including the proliferation of artificial intelligence agents, could further boost Ether's performance, which in 2024 fell behind rival layer-1 network Solana, Bitwise head of research Matt Hogan told Cointelegraph.
Ethereum and Base, the Ethereum Layer-2 scaling network, are “where a lot of AI agents are working right now,” Hougan told Cointelegraph in a December 19 interview.
“[A] Many people think that it is happening to Solana. In fact, there is a lot happening in the ETH ecosystem […] I'm bullish on both, but I think ETH is underrated in this regard.
Meanwhile, asset manager VanEyck estimates that the Ether spot price will reach $6,000 in 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, with an ETH price of up to $22,000.
Source: Stacking Awards
Investing in ETFs
US-based ether ETFs are likely to show higher yields soon, Bernstein Research said in a December report.
Staking involves locking ETH as collateral with proof on the Ethereum network. Stakeholders earn ETH payments from network fees and other rewards, but if the validator misbehaves, they can be “cut” – or lose their ETH guarantee.
In the year As of December 20, Staking Ether earns an annual percentage return (APR) of approximately 3.35%, denominated in ETH, according to Staking Rewards.
“I think it's a reasonable bet that we're going to see that with ETH staking, it's going to be researched and it's going to be applicable in the ETF space,” Hugan said.
On December 19, the US Securities and Exchange Commission simultaneously approved two ETFs with a market-weighted BTC and ETH index, creating another potential way for ETH funds to grow their income.
Magazine: Tornado Cash 2.0 – The Race to Build Safe and Legal Coin Mixers
