Andrew Kang, co-founder and partner of cryptocurrency venture capital firm Mechanism Capital, stated on social media that unless Ethereum develops a convincing way to improve its economic situation, the price of Ethereum will not have much upward potential with the approval of spot ETF.
Kang expects that the flow of funds for Ethereum spot ETF will be lower than the market's general expectations, because the approval of ETF was unexpected, and the issuer did not have much time to persuade large holders to convert their ETH to ETF. On the other hand, the attractiveness of converting ETH for holders is low because they need to give up staking or use ETH as collateral for DeFi.
In addition, Andrew Kang expects ETH/BTC to continue its downward trend, with a ratio between 0.035 and 0.06 in the next year. Although the sample size is small, the market does see ETH/BTC setting lower highs in each cycle, so this should not be surprising.