Balchunas focused on the weak performance of ETH ETFs since their launch in the U.S. and explained that the addition of staking capabilities would have minimal impact on investor inflows without a sustained price rally.
According to Balchunas, Ethereum’s price struggles are the core issue behind low ETF inflows. While staking could provide some added value, he noted that it alone is unlikely to significantly boost demand. The lack of a consistent and compelling price rally has limited Ethereum’s appeal to institutional investors, especially in comparison to Bitcoin, which has enjoyed stronger ETF performance and broader investor enthusiasm.
Ethereum Needs a Real Rally
Balchunas emphasized that poor performance following an ETF launch makes it more difficult to attract sustained interest, suggesting that Ethereum would need several months of bullish momentum to change market sentiment. Bloomberg’s James Seyffart also commented that while the final deadline for staking approval in ETH ETFs is set for the end of October, interim decisions could arrive by the end of May or August.
The analysts concluded that Ethereum’s ETF potential remains constrained by market dynamics, and any significant growth will likely depend on a broader price recovery and investor confidence.
The post How Ethereum ETFs are Different From Bitcoin ETFs? appeared first on Coindoo.