Source: Cointelegraph
Original: (Analyst: Without months of upward movement, Ethereum (ETH) ETF staking will not have a significant impact)
Summary of key points:
Ethereum ETF's price rebound shows good performance.
However, Balchunas pointed out that one of the main reasons for the weak capital inflow into the Ethereum ETF since its listing in the U.S. in July is the failure of Ethereum's price to sustain an upward trend. "The fundamental issue with Ethereum is its lackluster performance, which has never formed a long-term upward trend."
He added that during the surge in Ethereum's price in December 2024, the capital inflow showed a significant positive correlation.
Trump's victory in November sparked a frenzy in the crypto market, pushing ETH to soar 71% to $4,107 on December 16.
Farside data shows that since November 22, the spot Ethereum ETF has achieved net inflows for 19 consecutive days, accumulating about $2.44 billion.
However, according to CoinMarketCap data, since reaching the price level of $4,107, Ethereum has entered a downward channel, having fallen 56% as of the time of writing, trading around $1,809.
Balchunas stated that to revitalize capital inflow, Ethereum needs "months of sustained upward trends" along with a "strong market narrative." He emphasized: "It cannot just be a brief surge for a week; that is far from enough."
This analyst pointed out that after the listing of the Ethereum ETF, the price "quickly plummeted," which stands in stark contrast to the spot Bitcoin ETF— the latter hit a historical high just two months after its listing in January 2024. "When the ETF is listed and encounters such performance, it is indeed very challenging."
U.S. ETF issuers are still waiting for the Securities and Exchange Commission to approve Ethereum ETFs that offer staking services. Earlier this year, several institutions have successively submitted relevant applications.
Bloomberg ETF analyst James Seyffart revealed: "The staking feature could potentially be approved early, but the final deadline is at the end of October." He further explained: "Before the final ruling (approval or rejection), the end of May and the end of August may be two key intermediate time points."
Related: Coinbase to launch yield-generating Bitcoin (BTC) fund for institutions
This article does not constitute any investment advice. All investment and trading activities carry risks; readers should conduct their own research before making decisions.
