A research report presented by broker Bernstein on Monday indicated that Ether's price performance has lagged behind Bitcoin this year, but the situation regarding Ether ETF capital inflows has turned, suggesting that this period of underperformance may have ended.
Bernstein pointed out that last Friday, BlackRock's spot Ether ETF capital inflows reached $250 million, while BlackRock's spot Bitcoin ETF capital inflows were only $137 million. Analysts led by Gautam Chhugani wrote in the report: 'This creates favorable supply-demand conditions for Ether.'
The staking yield could be another source of momentum for Ether. Bernstein noted that the initial Ether spot ETF application did not include such staking yields due to regulatory restrictions.
Analysts indicate that there will be a cryptocurrency-friendly regulatory authority after Trump takes office, and the staking yield for Ether may be approved. It is expected that as blockchain activity increases, Ethereum's current 3% yield could rise to 4% - 5%. In a declining interest rate environment, this could represent an attractive yield for investors. Additionally, the recent observed growth of Ethereum ETFs with higher capital inflows may benefit ETH.
The report indicates 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 Ether remains stable, maintaining a total of 120 million Ether.
Reports show that nearly 60% of the Ether supply has not been traded in the past 12 months, representing a 'resilient investor base,' which reinforces the positive supply-demand situation for cryptocurrencies.
"Is Ether ready to surge? Bernstein: The risk-reward ratio is very attractive" This article was first published on (Blockcast).
