Kaiko: Ethereum Expected To See Positive Growth In 2025, Benefiting From US Regulatory Changes
In Brief
Kaiko forecasts that regulatory changes in Washington, particularly clarity around Ethereum’s classification and the future of staking, could be major drivers of ETH growth in the coming year.
Provider of cryptocurrency market data, Kaiko highlighted in its latest report that spot Ethereum exchange-traded funds (ETFs) had a slow start after launching in July earlier this year. Similar to the launch of the spot Bitcoin ETF, Grayscale’s Ethereum fund initially had a negative impact on the market, as the digital asset manager kept fees high at 2%.
However, the newly launched Ethereum ETFs began to attract inflows toward the end of 2024, particularly as outflows from Grayscale’s ETHE fund slowed down. Inflows surged considerably following the US elections in November, as traders also increased their positions in ETH futures on the Chicago Mercantile Exchange. This mirrored the activity seen in Bitcoin futures during May and June when traders engaged in carry trades.
Kaiko notes that the changing regulatory environment and the growing open interest in ETH futures played a key role in the positive shift for Ethereum ETFs, with net flows turning positive in late November and continuing through December. Net flows since the launch have now surpassed $2 billion, which includes more than $3 billion in outflows from ETHE.
Kaiko forecasts that Ethereum is poised to benefit from the regulatory changes in Washington, D.C. While it has lagged behind Bitcoin this year, the evolving regulatory landscape under the new administration is expected to have a strong positive impact on Ethereum, the second-largest cryptocurrency by market capitalization. Key factors such as clarity around Ethereum’s classification—whether as a commodity or security—and the future of staking could be major drivers of growth in the coming year.
Ethereum Price Climbs 3.88%, While ETFs See $53.5M In Inflows
As of the latest update, ETH is trading at $3,524, reflecting a 3.88% increase over the past 24 hours. Its intraday low and high are recorded at $3,385 and $3,531, respectively. The cryptocurrency’s market capitalization is $421 billion, with a 24-hour trading volume of $21 billion, according to data from CoinMarketCap.
Furthermore, on Tuesday, spot Ethereum ETFs experienced $53.5 million in net inflows. BlackRock’s ETHA led with $43.9 million in inflows, followed by Bitwise’s ETH fund with $6.2 million and Fidelity’s FETH with $3.45 million. The total trading volume for spot Ethereum ETFs yesterday was $262 million, with their cumulative net inflows reaching $2.51 billion, according to data from SoSoValue.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
