Ethereum ETFs Surge to Record Highs in December Inflows

The US Spot Ethereum exchange-traded funds (ETFs) set a new monthly record in December, attracting over $2.08 billion in net inflows. 

The inflows of the nine biggest US ETH ETFs doubled compared to $1 billion of November’s inflows. 

BlackRock Led the ETH ETFs

The total net inflows for Ethereum ETFs exceeded $12.11 billion in December, according to the data from SoSoValue. The number represents 3.01% of Ethereum’s market capitalization.

Most ETF inflows took place in early December, as Ethereum’s price surged past $4,000 mid-month, with weekly inflows reaching around $850 million for two weeks straight.

By December 20, weekly inflows had dropped significantly to $62.7 million, reflecting Ethereum’s price decline. However, they bounced back to $349 million in the final week of 2024.

Ethereum ETF performance metrics. Source: SoSoValue

BlackRock’s iShares Ethereum Trust (ETHA) ETF dominated December inflows, pulling in more than 52% or $1.4 billion alone. The second biggest ETH ETF, Fidelity Ethereum Fund (FETH), followed with $752 million in inflows, while Grayscale Ethereum Trust ETF (ETHE) faced ongoing difficulties, with a monthly outflows of $274 million.

According to SoSoValue, total inflows into ETH ETFs during December were nearly double the $1 billion recorded in November. However, despite the record inflows, Ethereum ETFs still trail behind Bitcoin ETFs .

Challenging Year for Ethereum

2024 has been a challenging year for Ethereum, which saw a 48% gain while Bitcoin surged 120%.

With 28% of ETH staked, Ethereum’s staking feature has faced criticism that Ethereum shifted from an active blockchain to a passive income tool, whose 3% staking yield are even less appealing than traditional financial interest rates.

Network activity has struggled to reach previous highs of 11 million, and in December, the growth of active validators turned negative. 

Ethereum has also faced growing competition, particularly from blockchains like Solana, which have outperformed it.

“The Dencun upgrade, for example, came six months too late, missing the peak of the meme coin craze that had already moved to the more cost-effective Solana alternative,” said analysts at 10x Research in their December 31st newsletter.

Ethereum’s 2025 Outlook Faces Uncertainty

Looking to 2025, Ethereum’s outlook will largely hinge on the trend in active validators. With the 1-month growth rate of validators turning negative, concerns are rising that some may exit the network.

If unstaking accelerates, it could put downward pressure on ETH prices, complicating the blockchain’s prospects, according to 10x Research analysts.

“While the possibility of a new catalyst cannot be ruled out, we wouldn’t be surprised if Ethereum struggles to deliver meaningful rallies next year.”

On the Flipside

• Ethereum derivatives markets remain neutral to bullish, with positive open interest suggesting that a $3,900 price target is still within reach.

Why This Matters

Ethereum is a foundational blockchain for decentralized finance (DeFi) and blockchain development, with a large number of DeFi applications and smart contracts built on its platform. Changes in Ethereum’s price directly affect the liquidity, attractiveness, and overall stability of the DeFi ecosystem.

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