The inflows signal a robust institutional appetite for the second-largest cryptocurrency by market value and suggest that ETH price predictions for 2025 will be bullish.

Data from industry trackers show these inflows almost doubled November’s totals, underscoring growing investor confidence in ether-backed products, even as Ethereum itself faced a range of network and market challenges in 2024.

According to figures published by research firm SoSoValue, Ethereum ETFs soared to roughly $2.08 billion in net inflows last month, lifting total Ethereum ETF assets to more than $12 billion. These inflows accounted for an estimated 3% of Ethereum’s overall market capitalization. Most of the activity occurred in early December, coinciding with a surge in Ethereum’s price above $4,000 before a mid-month retreat. By December 20, weekly inflows had dropped substantially to around $62.7 million but recovered toward the year’s end, hitting $349 million in the final week of 2024.

Several funds dominated December’s performance. BlackRock’s iShares Ethereum Trust, often cited by analysts on social media platform X for its market influence, attracted the lion’s share of December inflows at over $1.4 billion, representing more than half of the total monthly figure. Fidelity’s Ethereum Fund followed with $752 million. By contrast, one prominent product reported outflows of over $200 million, highlighting the uneven performance among major Ethereum ETFs. Despite the notable gains, Ethereum ETFs still lag behind Bitcoin ETFs, which have amassed significantly larger inflows over the same period.

Market observers on X attributed some of Ethereum ETFs’ success to heightened institutional interest and the ongoing maturation of cryptocurrency-based financial instruments. However, Ethereum’s broader ecosystem weathered a challenging year in 2024, growing 48% compared to Bitcoin’s 120% surge.

Professionals analyzing blockchain data have pointed to multiple reasons for this gap, including increased competition from emerging networks like Solana, whose lower fees and transaction speeds attracted users during the “meme coin craze.” One research note suggested that Ethereum’s “Dencun upgrade” arrived six months too late to capitalize on that demand.

Critics have also highlighted Ethereum’s staking feature, with roughly 28% of the total ether supply now locked up. Although staking yields around 3%, some traders on X argue that this rate trails behind returns available in traditional finance, dampening the appeal of holding staked ETH. Moreover, Ethereum’s network usage has struggled to revisit earlier highs of around 11 million weekly transactions, suggesting that some participants have migrated to alternative platforms.

Heading into 2025, several analysts remain wary of Ethereum’s outlook, noting that if the recent drop in active validator growth accelerates, more validators could exit the network, placing downward pressure on prices. One market research group warned that “unless Ethereum can reignite innovation and user engagement, it may continue to underperform relative to Bitcoin.” Nonetheless, derivative indicators reflect a neutral-to-bullish bias, implying a potential return to $3,900 if positive catalysts emerge.