Ethereum ETFs Need More Than Staking to Reignite Inflows, Says Analyst
Weak Price Performance Undermines Impact of Staking Approvals
Staking Approval Not Enough Without ETH Price Momentum
Bloomberg ETF analyst Eric Balchunas has thrown cold water on expectations that staking approval for U.S.-listed Ethereum exchange-traded funds (ETFs) will meaningfully boost investor interest—unless Ether (ETH) enters a sustained rally.
Speaking on the New Era Finance Podcast on April 29, Balchunas remarked, “It’s only going to help—it can’t hurt,” regarding staking permissions. But he added that “a little” impact is all that should be expected unless Ethereum escapes its persistent underperformance.
ETH Needs a Multimonth Surge, Not a Spike
Despite the fanfare surrounding their launch, Ether ETFs have seen tepid inflows since July 2024. Balchunas attributed this to Ethereum’s failure to maintain price momentum. He explained, “The bigger problem with Ethereum is performance; it just doesn’t ever go on a nice long rally.”
The analyst pointed to a notable exception: following Donald Trump’s 2024 U.S. election victory, ETH surged 71%, climbing from $2,400 to $4,107 in under a month. That rally coincided with 19 consecutive days of net inflows into Ether ETFs, totaling $2.44 billion, according to Farside data.
Yet the rally proved fleeting. ETH has since dropped 56%, falling to $1,809, where it trades today, based on CoinMarketCap data.
“It needs something that is more than just a good week here and there,” Balchunas said, emphasizing the lack of a sustained, compelling narrative around Ethereum.
Bitcoin ETFs Outperformed, Deepening the Contrast
The contrast with Bitcoin is stark. Following the launch of spot Bitcoin ETFs in January 2024, the flagship cryptocurrency quickly surged to an all-time high of $94,352. That kind of early ETF performance created momentum and investor confidence—something ETH has yet to achieve.
“When you launch an ETF and you have that sort of performance out of the gate, it’s tough [for others to follow],” Balchunas noted.
SEC Decision on Staking Still Pending
The U.S. Securities and Exchange Commission (SEC) has not yet approved Ether ETFs to offer staking, though several issuers have applied. Bloomberg’s James Seyffart noted that intermediate decisions may come in late May or August, with a final SEC deadline at the end of October.
Until then, Ethereum’s ETF outlook remains mired in regulatory uncertainty and price weakness—two forces that continue to dampen investor enthusiasm.
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