Impact of Staking Approval on Ether ETFs in the US

Approving staking for spot Ether exchange-traded funds (ETFs) in the US may not significantly increase inflows unless Ether experiences a sustained rally, according to Bloomberg ETF analyst Eric Balchunas. Unlike spot Bitcoin ETFs, which reached new all-time highs just two months after launch, ETH saw a drop in price following the ETFs' introduction last year. Balchunas emphasized that for inflows to rise, ETH would require a prolonged uptrend and a compelling narrative. Despite the ability of Spot Ethereum ETFs to stake a portion of their tokens, it may not attract inflows without a sustained price rally. Balchunas highlighted the correlation between Ether's price surge in December and increased inflows, attributing weak inflows to ETH's failure to maintain a prolonged rally since the ETFs' launch in July. He suggested that Ether needs a sustained uptrend and a compelling narrative to boost inflows, emphasizing the importance of more than just short-term positive performance. Read more AI-generated news on: https://app.chaingpt.org/news