diff --git a/dev-packages/e2e-tests/test-applications/node-firebase/.gitignore b/dev-packages/e2e-tests/test-applications/node-firebase/.gitignore
index 48b1bd712db4..715e7980bcde 100644
--- a/dev-packages/e2e-tests/test-applications/node-firebase/.gitignore
+++ b/dev-packages/e2e-tests/test-applications/node-firebase/.gitignore
@@ -41,6 +41,7 @@ lerna-debug.log*
 .env.test.local
 .env.production.local
 .env.local
+!functions/.env.local
 
 # temp directory
 .temp
diff --git a/dev-packages/e2e-tests/test-applications/node-firebase/firestore-app/src/init.ts b/dev-packages/e2e-tests/test-applications/node-firebase/firestore-app/src/init.ts
index 4eff7dbe5e26..d2a4e05c3fe4 100644
--- a/dev-packages/e2e-tests/test-applications/node-firebase/firestore-app/src/init.ts
+++ b/dev-packages/e2e-tests/test-applications/node-firebase/firestore-app/src/init.ts
@@ -4,7 +4,6 @@ import * as Sentry from '@sentry/node';
 // default. This file is imported before `app.ts` imports `firebase/firestore/lite`, so the
 // channel-injection hooks are installed before firestore loads.
 Sentry.init({
-  traceLifecycle: 'static',
   dsn: 'https://public@dsn.ingest.sentry.io/1337',
   release: '1.0',
   tracesSampleRate: 1.0,
diff --git a/dev-packages/e2e-tests/test-applications/node-firebase/functions/.env.local b/dev-packages/e2e-tests/test-applications/node-firebase/functions/.env.local
new file mode 100644
index 000000000000..9d18096edef7
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/node-firebase/functions/.env.local
@@ -0,0 +1,2 @@
+# The emulator loads firebase-functions before the handler module calls Sentry.init().
+NODE_OPTIONS=--import=@sentry/node/import
diff --git a/dev-packages/e2e-tests/test-applications/node-firebase/functions/src/init.ts b/dev-packages/e2e-tests/test-applications/node-firebase/functions/src/init.ts
index 60959f8e932b..c3b4a642375a 100644
--- a/dev-packages/e2e-tests/test-applications/node-firebase/functions/src/init.ts
+++ b/dev-packages/e2e-tests/test-applications/node-firebase/functions/src/init.ts
@@ -1,7 +1,6 @@
 import * as Sentry from '@sentry/node';
 
 Sentry.init({
-  traceLifecycle: 'static',
   dsn: 'https://public@dsn.ingest.sentry.io/1337',
   release: '1.0',
   tracesSampleRate: 1.0,
diff --git a/dev-packages/e2e-tests/test-applications/node-firebase/tests/functions.test.ts b/dev-packages/e2e-tests/test-applications/node-firebase/tests/functions.test.ts
index a250d80bdb31..1a1093a43031 100644
--- a/dev-packages/e2e-tests/test-applications/node-firebase/tests/functions.test.ts
+++ b/dev-packages/e2e-tests/test-applications/node-firebase/tests/functions.test.ts
@@ -1,154 +1,105 @@
 import { expect, test } from '@playwright/test';
-import { waitForError, waitForTransaction } from '@sentry-internal/test-utils';
+import {
+  collectStreamedSpansUntilSegment,
+  getSpanOp,
+  waitForError,
+  waitForStreamedSpan,
+} from '@sentry-internal/test-utils';
 
-// FIXME: firebase-functions runs inside the Firebase emulator, where the channel-injection runtime
-// module hook doesn't transform the emulator-loaded handlers, so no channel spans are produced.
-// (Firestore in a plain Node process works.) Deferred; tracked separately for a channel firebase-
-// functions emulator fix.
-test.fixme('should only call the function once without any extra calls', async () => {
-  const serverTransactionPromise = waitForTransaction('node-firebase', span => {
-    return span.transaction === 'firebase.function.http.request';
-  });
-
-  await fetch(`http://localhost:5001/demo-functions/default/helloWorld`);
-
-  const transactionEvent = await serverTransactionPromise;
-
-  expect(transactionEvent.transaction).toEqual('firebase.function.http.request');
-  expect(transactionEvent.contexts).toEqual(
-    expect.objectContaining({
-      trace: expect.objectContaining({
-        data: {
-          'cloud.project_id': 'demo-functions',
-          'faas.name': 'helloWorld',
-          'faas.provider': 'firebase',
-          'faas.trigger': 'http.request',
-          'sentry.kind': 'server',
-          'sentry.op': 'http.request',
-          'sentry.origin': 'auto.firebase.functions',
-          'sentry.sample_rate': expect.any(Number),
-          'sentry.segment.name.source': 'route',
-        },
-        op: 'http.request',
-        origin: 'auto.firebase.functions',
-        span_id: expect.any(String),
-        status: 'ok',
-        trace_id: expect.any(String),
-      }),
-    }),
+test('should create one segment for an HTTP function', async () => {
+  const spansPromise = collectStreamedSpansUntilSegment(
+    'node-firebase',
+    span => span.name === 'firebase.function.http.request' && span.attributes['faas.name']?.value === 'helloWorld',
   );
-});
-
-test.fixme('should send failed transaction when the function fails', async () => {
-  const errorEventPromise = waitForError('node-firebase', () => true);
-  const serverTransactionPromise = waitForTransaction('node-firebase', span => {
-    return !!span.transaction;
-  });
-
-  await fetch(`http://localhost:5001/demo-functions/default/unhandeledError`);
 
-  const transactionEvent = await serverTransactionPromise;
-  const errorEvent = await errorEventPromise;
+  const response = await fetch('http://localhost:5001/demo-functions/default/helloWorld');
 
-  expect(transactionEvent.transaction).toEqual('firebase.function.http.request');
-  expect(transactionEvent.contexts?.trace?.trace_id).toEqual(errorEvent.contexts?.trace?.trace_id);
-  expect(errorEvent).toMatchObject({
-    exception: {
-      values: [
-        {
-          type: 'Error',
-          value: 'There is an error!',
-          mechanism: {
-            type: 'auto.firebase.functions',
-            handled: false,
-          },
-        },
-      ],
-    },
+  expect(response.ok).toBe(true);
+  const spans = await spansPromise;
+  expect(spans).toHaveLength(1);
+  const span = spans[0]!;
+  expect(getSpanOp(span)).toBe('function.gcp');
+  expect(span).toMatchObject({
+    name: 'firebase.function.http.request',
+    status: 'ok',
+    span_id: expect.any(String),
+    trace_id: expect.any(String),
+    attributes: expect.objectContaining({
+      'cloud.project_id': { value: 'demo-functions', type: 'string' },
+      'faas.name': { value: 'helloWorld', type: 'string' },
+      'faas.provider': { value: 'firebase', type: 'string' },
+      'faas.trigger': { value: 'http.request', type: 'string' },
+      'sentry.kind': { value: 'server', type: 'string' },
+      'sentry.origin': { value: 'auto.firebase.functions', type: 'string' },
+      'sentry.sample_rate': { value: expect.any(Number), type: 'integer' },
+      'sentry.segment.name.source': { value: 'component', type: 'string' },
+    }),
   });
 });
 
-test.fixme('should create a document and trigger onDocumentCreated and another with authContext', async () => {
-  const serverTransactionPromise = waitForTransaction('node-firebase', span => {
-    return span.transaction === 'firebase.function.http.request';
-  });
+test('should send failed span when the function fails', async () => {
+  const errorPromise = waitForError(
+    'node-firebase',
+    event => event.exception?.values?.[0]?.value === 'There is an error!',
+  );
+  const spanPromise = waitForStreamedSpan(
+    'node-firebase',
+    span =>
+      span.is_segment &&
+      span.name === 'firebase.function.http.request' &&
+      span.attributes['faas.name']?.value === 'unhandeledError',
+  );
 
-  const serverTransactionOnDocumentCreatePromise = waitForTransaction('node-firebase', span => {
-    return (
-      span.transaction === 'firebase.function.firestore.document.created' &&
-      span.contexts?.trace?.data?.['faas.name'] === 'onDocumentCreate'
-    );
-  });
+  await fetch('http://localhost:5001/demo-functions/default/unhandeledError');
 
-  const serverTransactionOnDocumentWithAuthContextCreatePromise = waitForTransaction('node-firebase', span => {
-    return (
-      span.transaction === 'firebase.function.firestore.document.created' &&
-      span.contexts?.trace?.data?.['faas.name'] === 'onDocumentCreateWithAuthContext'
-    );
-  });
+  const span = await spanPromise;
+  const error = await errorPromise;
+  expect(span.status).toBe('error');
+  expect(span.trace_id).toBe(error.contexts?.trace?.trace_id);
+  expect(span.span_id).toBe(error.contexts?.trace?.span_id);
+  expect(error.exception?.values).toEqual([
+    expect.objectContaining({
+      type: 'Error',
+      value: 'There is an error!',
+      mechanism: { type: 'auto.firebase.functions', handled: false },
+    }),
+  ]);
+});
 
-  await fetch(`http://localhost:5001/demo-functions/default/onCallSomething`);
+test('should create a document and trigger onDocumentCreated and another with authContext', async () => {
+  const functions = [
+    { name: 'onCallSomething', trigger: 'http.request' },
+    { name: 'onDocumentCreate', trigger: 'firestore.document.created' },
+    { name: 'onDocumentCreateWithAuthContext', trigger: 'firestore.document.created' },
+  ];
+  const spanPromises = functions.map(({ name }) =>
+    collectStreamedSpansUntilSegment('node-firebase', span => span.attributes['faas.name']?.value === name),
+  );
 
-  const transactionEvent = await serverTransactionPromise;
-  const transactionEventOnDocumentCreate = await serverTransactionOnDocumentCreatePromise;
-  const transactionEventOnDocumentWithAuthContextCreate = await serverTransactionOnDocumentWithAuthContextCreatePromise;
+  const response = await fetch('http://localhost:5001/demo-functions/default/onCallSomething');
 
-  expect(transactionEvent.transaction).toEqual('firebase.function.http.request');
-  expect(transactionEvent.contexts?.trace).toEqual({
-    data: {
-      'cloud.project_id': 'demo-functions',
-      'faas.name': 'onCallSomething',
-      'faas.provider': 'firebase',
-      'faas.trigger': 'http.request',
-      'sentry.kind': 'server',
-      'sentry.op': 'http.request',
-      'sentry.origin': 'auto.firebase.functions',
-      'sentry.sample_rate': expect.any(Number),
-      'sentry.segment.name.source': 'route',
-    },
-    op: 'http.request',
-    origin: 'auto.firebase.functions',
-    span_id: expect.any(String),
-    status: 'ok',
-    trace_id: expect.any(String),
-  });
-  expect(transactionEvent.spans).toHaveLength(3);
-  expect(transactionEventOnDocumentCreate.contexts?.trace).toEqual({
-    data: {
-      'cloud.project_id': 'demo-functions',
-      'faas.name': 'onDocumentCreate',
-      'faas.provider': 'firebase',
-      'faas.trigger': 'firestore.document.created',
-      'sentry.kind': 'server',
-      'sentry.op': expect.any(String),
-      'sentry.origin': 'auto.firebase.functions',
-      'sentry.sample_rate': expect.any(Number),
-      'sentry.segment.name.source': 'route',
-    },
-    op: expect.any(String),
-    origin: 'auto.firebase.functions',
-    span_id: expect.any(String),
-    status: 'ok',
-    trace_id: expect.any(String),
-  });
-  expect(transactionEventOnDocumentCreate.spans).toHaveLength(2);
-  expect(transactionEventOnDocumentWithAuthContextCreate.contexts?.trace).toEqual({
-    data: {
-      'cloud.project_id': 'demo-functions',
-      'faas.name': 'onDocumentCreateWithAuthContext',
-      'faas.provider': 'firebase',
-      'faas.trigger': 'firestore.document.created',
-      'sentry.kind': 'server',
-      'sentry.op': expect.any(String),
-      'sentry.origin': 'auto.firebase.functions',
-      'sentry.sample_rate': expect.any(Number),
-      'sentry.segment.name.source': 'route',
-    },
-    op: expect.any(String),
-    origin: 'auto.firebase.functions',
-    span_id: expect.any(String),
-    status: 'ok',
-    trace_id: expect.any(String),
+  expect(response.ok).toBe(true);
+  const traces = await Promise.all(spanPromises);
+  functions.forEach(({ name, trigger }, index) => {
+    const spans = traces[index]!;
+    expect(spans).toHaveLength(1);
+    const segment = spans[0]!;
+    expect(segment).toMatchObject({
+      name: `firebase.function.${trigger}`,
+      status: 'ok',
+      span_id: expect.any(String),
+      trace_id: expect.any(String),
+      attributes: expect.objectContaining({
+        'cloud.project_id': { value: 'demo-functions', type: 'string' },
+        'faas.name': { value: name, type: 'string' },
+        'faas.provider': { value: 'firebase', type: 'string' },
+        'faas.trigger': { value: trigger, type: 'string' },
+        'sentry.kind': { value: 'server', type: 'string' },
+        'sentry.op': { value: 'function.gcp', type: 'string' },
+        'sentry.origin': { value: 'auto.firebase.functions', type: 'string' },
+        'sentry.sample_rate': { value: expect.any(Number), type: 'integer' },
+        'sentry.segment.name.source': { value: 'component', type: 'string' },
+      }),
+    });
   });
-  expect(transactionEventOnDocumentWithAuthContextCreate.spans).toHaveLength(0);
 });
diff --git a/dev-packages/e2e-tests/test-applications/node-firebase/tests/spans.test.ts b/dev-packages/e2e-tests/test-applications/node-firebase/tests/spans.test.ts
new file mode 100644
index 000000000000..dd4b11aa7586
--- /dev/null
+++ b/dev-packages/e2e-tests/test-applications/node-firebase/tests/spans.test.ts
@@ -0,0 +1,51 @@
+import { expect, test } from '@playwright/test';
+import { collectStreamedSpansUntilSegment } from '@sentry-internal/test-utils';
+
+// The orchestrion spans are Sentry-native, so they carry no span-kind attribute (`sentry.kind`).
+const origin = 'auto.firebase.firestore';
+
+function firestoreSpan(operation: string): unknown {
+  return expect.objectContaining({
+    name: `${operation} cities`,
+    is_segment: false,
+    parent_span_id: expect.any(String),
+    trace_id: expect.any(String),
+    span_id: expect.any(String),
+    end_timestamp: expect.any(Number),
+    start_timestamp: expect.any(Number),
+    status: 'ok',
+    attributes: expect.objectContaining({
+      'db.collection.name': { value: 'cities', type: 'string' },
+      'db.namespace': { value: '[DEFAULT]', type: 'string' },
+      'db.operation.name': { value: operation, type: 'string' },
+      'db.system.name': { value: 'firebase.firestore', type: 'string' },
+      'firebase.firestore.options.projectId': { value: 'sentry-15d85', type: 'string' },
+      'firebase.firestore.type': { value: 'collection', type: 'string' },
+      'server.address': { value: '127.0.0.1', type: 'string' },
+      'server.port': { value: 8080, type: 'integer' },
+      'sentry.origin': { value: origin, type: 'string' },
+      'sentry.op': { value: 'db.query', type: 'string' },
+    }),
+  });
+}
+
+const spanAddDoc = firestoreSpan('addDoc');
+const spanSetDocs = firestoreSpan('setDoc');
+const spanGetDocs = firestoreSpan('getDocs');
+const spanDeleteDoc = firestoreSpan('deleteDoc');
+
+test('should add, set, get and delete document', async ({ baseURL }) => {
+  const serverSegmentPromise = collectStreamedSpansUntilSegment('node-firebase', 'Test Transaction');
+
+  await fetch(`${baseURL}/test`);
+
+  const segmentEventSpans = await serverSegmentPromise;
+  const segmentEvent = segmentEventSpans.find(segment => segment.is_segment && segment.name === 'Test Transaction')!;
+
+  expect(segmentEvent.name).toEqual('Test Transaction');
+  const children = segmentEventSpans.filter(
+    span => !span.is_segment && span.attributes['sentry.segment.id']?.value === segmentEvent.span_id,
+  );
+  expect(children).toHaveLength(4);
+  expect(children).toEqual(expect.arrayContaining([spanAddDoc, spanSetDocs, spanGetDocs, spanDeleteDoc]));
+});
diff --git a/dev-packages/e2e-tests/test-applications/node-firebase/tests/transactions.test.ts b/dev-packages/e2e-tests/test-applications/node-firebase/tests/transactions.test.ts
deleted file mode 100644
index 00a71bb47396..000000000000
--- a/dev-packages/e2e-tests/test-applications/node-firebase/tests/transactions.test.ts
+++ /dev/null
@@ -1,53 +0,0 @@
-import { expect, test } from '@playwright/test';
-import { waitForTransaction } from '@sentry-internal/test-utils';
-
-// The orchestrion spans are Sentry-native, so they carry no span-kind attribute (`sentry.kind`).
-const origin = 'auto.firebase.firestore';
-
-function firestoreSpan(operation: string): unknown {
-  const data: Record<string, unknown> = {
-    'db.collection.name': 'cities',
-    'db.namespace': '[DEFAULT]',
-    'db.operation.name': operation,
-    'db.system.name': 'firebase.firestore',
-    'firebase.firestore.options.projectId': 'sentry-15d85',
-    'firebase.firestore.type': 'collection',
-    'server.address': '127.0.0.1',
-    'server.port': 8080,
-    'sentry.origin': origin,
-    'sentry.op': 'db.query',
-  };
-
-  return expect.objectContaining({
-    description: `${operation} cities`,
-    data: expect.objectContaining(data),
-    op: 'db.query',
-    origin,
-    parent_span_id: expect.any(String),
-    trace_id: expect.any(String),
-    span_id: expect.any(String),
-    timestamp: expect.any(Number),
-    start_timestamp: expect.any(Number),
-    status: 'ok',
-  });
-}
-
-const spanAddDoc = firestoreSpan('addDoc');
-const spanSetDocs = firestoreSpan('setDoc');
-const spanGetDocs = firestoreSpan('getDocs');
-const spanDeleteDoc = firestoreSpan('deleteDoc');
-
-test('should add, set, get and delete document', async ({ baseURL, page }) => {
-  const serverTransactionPromise = waitForTransaction('node-firebase', span => {
-    return span.transaction === 'Test Transaction';
-  });
-
-  await fetch(`${baseURL}/test`);
-
-  const transactionEvent = await serverTransactionPromise;
-
-  expect(transactionEvent.transaction).toEqual('Test Transaction');
-  expect(transactionEvent.spans?.length).toEqual(4);
-
-  expect(transactionEvent.spans).toEqual(expect.arrayContaining([spanAddDoc, spanSetDocs, spanGetDocs, spanDeleteDoc]));
-});
diff --git a/dev-packages/e2e-tests/test-applications/node-profiling-electron/index.electron.js b/dev-packages/e2e-tests/test-applications/node-profiling-electron/index.electron.js
index 7c4246d616a9..d08ac4ecc142 100644
--- a/dev-packages/e2e-tests/test-applications/node-profiling-electron/index.electron.js
+++ b/dev-packages/e2e-tests/test-applications/node-profiling-electron/index.electron.js
@@ -4,7 +4,6 @@ const Sentry = require('@sentry/electron/main');
 const path = require('node:path');
 
 Sentry.init({
-  traceLifecycle: 'static',
   dsn: 'https://7fa19397baaf433f919fbe02228d5470@o1137848.ingest.sentry.io/6625302',
   debug: true,
   tracesSampleRate: 1.0,