Will Ethereum Take the Baton from Bitcoin? ETF Fund Flows Hint at a Market Shift

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Renowned trader Eugene Ng Ah Sio sparked discussions on December 29 with his Q1 2025 outlook, predicting Ethereum (ETH) as the next top-performing mainstream token. His analysis highlights three bullish factors: technical momentum, political endorsements, and ecosystem growth.

Why Ethereum ETF Flows Are Gaining Momentum

Data from SoSoValue reveals a pivotal shift post-November 6, with Ethereum spot ETFs experiencing accelerated inflows—even outpacing Bitcoin ETFs. By late December, this trend intensified:

Preliminary Monday data from Lookonchain suggests continuity:

The "Trump Effect" on Ethereum

The WLFI initiative, linked to the Trump family, has aggressively accumulated ETH and ecosystem tokens like AAVE, LINK, and ENA. This political endorsement adds speculative fervor to ETH's rally.

Historical Precedents: Will ETH Outperform Again?

Coinglass data shows ETH historically shines post-U.S. elections and Bitcoin halvings:

A repeat could position ETH for significant Q1 2025 gains.

High-Beta Ethereum Ecosystem Picks

If ETH rallies, these tokens may offer leveraged exposure:

  1. Trump-Favored Tokens: AAVE, LINK, ENA, ONDO
  2. Grayscale’s Top 20: UNI, OP, LDO
  3. Staking Derivatives: RPL, SSV
  4. AI Integrations: VIRTUAL, AIXBT

👉 Explore Ethereum's ecosystem potential

Counterarguments: A Cautious Outlook

10x Research’s Markus Thielen warns of ETH underperformance in 2025’s potential hawkish macro climate. Market predictions remain speculative—always DYOR.

FAQ Section

Q: Why are Ethereum ETFs attracting more inflows than Bitcoin?
A: Shifting investor sentiment, staking yields, and political endorsements are key drivers.

Q: How reliable are historical patterns for ETH price predictions?
A: Past trends don’t guarantee future results but provide contextual benchmarks.

Q: What risks could derail ETH’s rally?
A: Regulatory changes, macro liquidity shifts, or ecosystem setbacks may impact performance.

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