The research report released by broker Bernstein on Monday indicated that Ethereum's price performance has lagged behind Bitcoin this year, but the inflow of funds into Ethereum ETFs has turned a corner, suggesting that this period of poor performance may be over.
Bernstein noted that last Friday, BlackRock's spot Ethereum ETF saw an inflow of $250 million, while BlackRock's spot Bitcoin ETF had an inflow of only $137 million. Analysts led by Gautam Chhugani wrote in the report: "This creates a favorable supply-demand situation for Ethereum."
Staking yields may be another source of momentum for Ethereum. Bernstein pointed out that the initial applications for spot Ethereum ETFs did not include such staking yields due to regulatory restrictions.
Analysts stated that with a cryptocurrency-friendly SEC expected after Trump takes office, Ethereum's staking yields could receive approval, and it is anticipated that as blockchain activity increases, Ethereum's current yield of 3% could rise to 4% - 5%. In a declining interest rate environment, this could present an attractive yield for investors. Additionally, the recent observed growth of Ethereum ETFs with higher inflows could benefit ETH.
The report indicated that Ethereum blockchain activity is heating up, and this network remains the preferred platform for asset tokenization and stablecoins. Bernstein stated that after Ethereum transitioned to a proof-of-stake consensus mechanism, the supply of Ethereum remains flat, maintaining a total of 120 million ETH.
The report shows that nearly 60% of Ethereum's supply has not changed hands in the past 12 months, representing a "resilient investor base," which reinforces the positive supply-demand situation for cryptocurrencies.