Source: Cointelegraph
Original: “Analyst: Ethereum (ETH) ETF staking will not have much impact without months of price increases”

Key Points Summary:

Ethereum ETF shows positive performance after price rebound.

However, Balchunas pointed out that one of the main reasons for the weak inflows into the Ethereum ETF since its launch 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 managed to form a long-term upward trend."

He added that during the surge in Ethereum's price in December 2024, the inflow of funds showed a clear positive correlation with it.

Trump's victory in November triggered a frenzy in the crypto market, driving 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 approximately $2.44 billion.

However, according to CoinMarketCap data, after reaching the price of $4,107, Ethereum entered a downward channel and has since dropped 56%, trading around $1,809 at the time of publication.

Balchunas stated that to revive inflows, Ethereum needs "months of sustained upward movement" along with a "strong market narrative." He emphasized, "It can't just be a brief spike for a week; that's far from enough."

The analyst noted that after the Ethereum ETF was launched, the price "plummeted quickly," which stands in stark contrast to the spot Bitcoin ETF—after its launch in January 2024, Bitcoin (BTC) reached an all-time high just two months later. "When an ETF faces such performance right after its launch, it is indeed challenging."

U.S. ETF issuers are still waiting for the Securities and Exchange Commission to approve Ethereum ETF staking services. Earlier this year, several institutions submitted related applications.

Bloomberg ETF analyst James Seyffart revealed, "The staking feature could potentially be approved early, but the final deadline is the end of October." He further explained, "Before the final ruling (approval or rejection), the end of May and the end of August could 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, and readers should conduct their own research before making decisions.

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