According to ChainCatcher, Andrew Kang, co-founder and partner of crypto venture capital firm Mechanism Capital, posted on social media that unless Ethereum develops a convincing way to improve its economic conditions, the price of Ethereum will not gain much upside from the passage of a spot ETF.

It expects the flow of funds for Ethereum spot ETFs to be lower than the general market expectations, because the approval of the ETF was unexpected and the issuer did not have much time to convince large holders to convert their ETH into ETFs. On the other hand, it is less attractive for holders to convert ETH because they need to give up staking or use the income of ETH as DeFi collateral.

Furthermore, Andrew Kang expects ETH/BTC to continue its downward trend, with the ratio between 0.035 and 0.06 over the next year. Although the sample size is small, the market does see ETH/BTC making lower highs in each cycle, so this should not be surprising.