Even if the spot Ethereum ETF is approved for 'staking functionality', its impact on market capital inflow may still be limited.
Bloomberg ETF expert Balchunas bluntly stated:
The 'staking function may add some value, but the real issue with Ethereum lies in its persistently weak price performance.
Since hitting a high of $4,107 last December, ETH has been on a downward trend, now halving to around $1,809. Compared to BTC, which set a historical high during the same period, ETH seems to be struggling.
Data shows:
• In December 2023, the crypto market briefly celebrated due to the 'Trump effect'.
• ETH once surged 71% in a single month, attracting net inflows for spot ETFs for 19 consecutive days, totaling over $2.44 billion.
• However, the fleeting market conditions have resulted in several months of capital outflow and market indifference.
Balchunas believes:
Without several months of continuous growth and a strong market narrative, it will be hard for ETH ETF to truly attract capital.
The staking function may be implemented by the end of October, with the end of May and the end of August being critical approval dates.
But the problem is: if ETH itself is not strong, then no matter how good the staking returns are, it will only be a drop in the bucket.
Staking ETF ≠ market savior.
What truly changes the direction of capital flow is the resonance of price trends and market sentiment.
The upcoming ETH must deliver strong performance; otherwise, no matter how favorable the policies are, it will be difficult to reverse the downward logic.
Do you think ETH can regain strength and ignite the staking ETF market? Feel free to discuss in the comments!
