PANews December 2 news, according to CoinDesk, on Monday, the brokerage firm Bernstein stated in a research report that although Ethereum's performance has lagged behind its larger competitor Bitcoin so far this year, inflows into Ethereum ETFs have seen a turnaround, indicating that this period of underperformance may be coming to an end.
The brokerage firm noted that last Friday, BlackRock's spot Ethereum ETF saw inflows of $250 million, while the larger spot Bitcoin ETF from the asset management company only had inflows of $137 million. Analysts led by Gautam Chhugani wrote, 'This creates a favorable supply-demand dynamic for Ethereum.' Staking yields could be another favorable factor for the cryptocurrency. Bernstein pointed out that due to regulatory constraints, the initial Ethereum spot ETF application did not include yields. The authors wrote, 'In the new Trump 2.0 era, the SEC holds a friendly stance towards cryptocurrencies, and Ethereum staking yields are likely to be approved. As activity on the Ethereum blockchain increases, yields could grow to 4%-5%.
The report stated that activity on the Ethereum blockchain is on the rise, and the network remains the preferred platform for asset tokenization and stablecoins. Bernstein noted that since Ethereum transitioned to a Proof-of-Stake consensus mechanism, the supply of Ether has been 'stagnant', remaining at 120 million coins. Ethereum's transaction fees provide staking participants with about a 3% yield, which means approximately 28% of the Ether supply is locked in staking contracts, and another 10% of the supply is locked in deposit and loan contracts. Over the past 12 months, nearly 60% of Ethereum has not changed hands, indicating a 'solid investor base', further strengthening the cryptocurrency's positive supply-demand dynamics.
