Crypto analyst Michael van de Poppe’s guest on the New Era Finance Podcast, Bloomberg ETF analyst Eric Balchunas made important statements regarding Ethereum (ETH).
Following the SEC’s decision to postpone ETH ETF, Eric Balchunas evaluated the impact of adding staking to Ethereum ETFs.
Balchunas stated that the addition of staking alone will not affect the price of ETH, and that staking will not increase inflows into ETFs unless there is a more sustainable rise in ETH.
An analyst stating that the addition of staking will have a small effect on ETH ETF inflows said, “This will only help, it won’t have a big effect.”
However, Balchunas pointed out that one of the main reasons for the weak inflows since the launch of Ethereum ETFs in the U.S. in July is that ETH has not yet experienced a prolonged rise.
“The biggest issue with Ethereum is its price performance. ETH never seems to have a nice and long upward trend.”
A Bloomberg analyst stated that for ETF inflows to recover, Ethereum needs a strong narrative backed by a solid and genuine rally lasting several months.
“Ethereum needs more than just a good week every now and then to strengthen itself and the ETFs.”
Comparing Ethereum to Bitcoin, Balchunas noted that the price quickly dropped after the launch of ETH ETFs and that it is harder to recover compared to Bitcoin ETFs.
“Because when you launch an ETF, it becomes difficult later on if you achieve such poor performance initially.”
Bloomberg ETF analyst James Seyffart, on the other hand, stated that the deadline for Ethereum ETFs to be approved for staking is the end of October. But he added that the possible interim dates before final approval or rejection are the end of May and the end of August.
*It is not investment advice
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