Analysts predict that net inflows into Ether (ETH) exchange-traded funds (ETFs) are on the rise and could potentially surpass those of Bitcoin (BTC) ETFs by 2025.

As of mid-December 2024, Ether ETFs have seen seven consecutive weeks of net inflows, reaching a peak of $2.2 billion during the week of November 26, 2024, according to CoinShares.

In contrast, Bitcoin ETFs experienced significant net outflows on December 19, 2024, marking the largest sell-off to date.

A December report by Bybit indicates that since November 2024, ETH has outperformed BTC in both spot and derivatives markets.

The approval of two ETFs by the US Securities and Exchange Commission on December 19, 2024, which include a market-weighted index of BTC and ETH, is expected to further boost inflows into Ether funds.

Nate Geraci, president of The ETF Store, noted that current net inflows for ETH ETFs are comparable to those of gold ETFs, with expectations for acceleration in the near future.

Bernstein Research indicates that staking yields for US-based Ether ETFs may soon be available, highlighting the potential for staking to be integrated into ETF structures.

As of December 20, 2024, staking Ether offers approximately 3.35% annualized returns, although there are risks involved, such as the possibility of losing collateral if validators fail.

Increased network activity, driven by artificial intelligence agents operating within the Ethereum ecosystem, may further enhance Ether's market performance, according to Matt Hougan of Bitwise.

Analysts expect continued growth in Ether ETF inflows, particularly if ETH prices perform well and regulatory changes allow funds to earn yields through staking.

VanEck forecasts that Ether's spot price could reach $6,000 by the fourth quarter of 2025, with projections of up to $22,000 by 2030 due to anticipated substantial free cash flow generation from the Ethereum network.

Matt Hougan emphasized that many AI agents operate within the Ethereum ecosystem rather than on competing platforms like Solana, suggesting that ETH is undervalued in this context.