Bloomberg ETF analyst Eric Balchunas has expressed that the approval of staking for spot Ethereum ETFs may not significantly boost inflows without a prolonged rally in the token’s price. On the April 29 episode of the New Era Finance Podcast, Balchunas stated that while staking could have a minor positive effect, it would not be sufficient alone, emphasizing that Ether requires “more than just a good week here and there.”
Balchunas pointed out that since the launch of Ether ETFs in July, weak inflows can largely be attributed to Ethereum’s inability to maintain a sustained price rally. He noted, “The bigger problem with Ethereum is performance; it just doesn’t ever go on a nice long rally.” He highlighted a correlation between price surges and inflows, recalling the significant increase in December when Ether rose 71% to $4,107, coinciding with a crypto market rally triggered by Donald Trump’s election victory. During that period, spot Ether ETFs experienced a 19-day streak of positive inflows, totaling around $2.44 billion.
Ether is trading at $1,809 at the time of publication. Source: CoinMarketCap
As of now, Ether is trading at $1,809. Since reaching the $4,107 mark, the price has fallen by 56%. Balchunas indicated that for inflows to increase again, Ethereum would need a “multimonth run” alongside a compelling narrative, stating, “It needs something more substantial than just short-term gains.”
He also mentioned that the post-launch performance of Ether ETFs was disappointing, contrasting it with spot Bitcoin ETFs, which saw Bitcoin achieve a new all-time high just two months after their launch in January 2024. “When you launch an ETF, and you have that sort of performance out of the gate, it’s tough,” he remarked.
US ETF issuers are currently awaiting the SEC’s decision on allowing Ether ETFs to offer staking, having filed multiple requests earlier this year. Bloomberg ETF analyst James Seyffart noted that approval for staking could come early, but the final deadline is set for the end of October, with potential intermediate deadlines in late May and late August.
Source: Cointelegraph. Edited by Bernie
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