According to BlockBeats, Andrew Kang, the co-founder and partner of crypto venture capital firm Mechanism Capital, has expressed his views on Ethereum's economic situation on social media. He stated that unless Ethereum develops a convincing path to improve its economic condition, the price of Ethereum will not gain significant upward space due to the approval of a spot ETF.
Kang predicts that the capital flow of Ethereum's spot ETF will be lower than the market's general expectations. This is because the approval of the ETF was unexpected, and the issuers did not have much time to persuade large holders to convert their ETH into ETFs. On the other hand, the appeal for holders to convert their ETH is less, as they would need to give up the benefits of staking or using ETH as collateral in DeFi.
Furthermore, Kang anticipates that the ETH/BTC ratio will continue to show a downward trend, with the ratio expected to be between 0.035 and 0.06 in the coming year. Despite the small sample size, the market has indeed seen the ETH/BTC ratio hit lower highs in each cycle, so this should not be surprising.