Balchunas said on an April 29 episode of the New Era Finance Podcast that staking being approved for Ether (ETH) ETFs would have “a little” impact on inflows, adding “it’s only going to help — it can’t hurt.”ETFs to do well on price rallyHowever, Balchunas noted that one of the main reasons for the weak inflows into Ether ETFs since their July launch in the US is that ETH has yet to sustain a prolonged rally.“The bigger problem with Ethereum is performance; it just doesn’t ever go on a nice long rally.”He added that when Ether’s price surged during a run in December, there was a direct correlation with an increase in inflows. Donald Trump’s election win in November sparked a crypto market rally which saw ETH surge 71% to reach $4,107 on Dec.16. From Nov.22, spot Ether ETFs saw a 19-day positive inflow streak, amassing approximately $2.44 billion in inflows, according to Farside data.
Related: Ethereum’s ‘capitulation’ suggests ETH price is undervalued: Fidelity reportUS ETF issuers are still waiting for the US Securities and Exchange Commission to allow Ether ETFs to offer staking after filing numerous requests for permission earlier this yearBloomberg ETF analyst James Seyffart said that “it’s possible they could be approved for staking early, but the final deadline is at the end of October.”“Potential intermediate deadlines before the final approval (or denial) are in late May and late August,” he added.
Key takeawaysApproving staking for spot Ether exchange-traded funds (ETFs) in the US may have a minimal impact on inflows unless Ether sees a sustained rally, says Eric BalchunasETH dropped significantly in price after the launch of the ETFs last year, unlike spot Bitcoin ETFs, which saw new all-time highs just two months after launching.
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Author / Journalist: Cointelegraph by Ciaran Lyons
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