PANews reported on December 2 that, according to CoinDesk, on Monday, brokerage Bernstein stated in a research report that although Ethereum has underperformed compared to its larger competitor Bitcoin so far this year, the inflow of Ethereum ETFs has turned a corner, indicating that this period of poor performance may be coming to an end.
The brokerage pointed out that last Friday, BlackRock's spot Ethereum ETF saw an inflow of $250 million, while the asset management company's larger spot Bitcoin ETF only saw an inflow of $137 million. Analysts led by Gautam Chhugani wrote: 'This creates favorable supply and demand dynamics for Ethereum.' Staking yields may be another favorable factor for this cryptocurrency. Bernstein noted that due to regulatory constraints, the initial application for the Ethereum spot ETF did not include yields. The authors wrote: 'In the new Trump 2.0 era, the SEC is friendly 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 Ethereum blockchain activity is on the rise, and the network remains the preferred platform for asset tokenization and stablecoins. Bernstein noted that since Ethereum's transition to a Proof-of-Stake consensus mechanism, the supply of Ether has been 'stagnant,' maintaining a total of 120 million coins. Ethereum's transaction fees provide approximately 3% yield to stakers, locking about 28% of Ether's supply in staking contracts, with another 10% locked in deposit and loan contracts. In the past 12 months, nearly 60% of Ethereum has not changed hands, indicating that 'the investor base is solid,' further reinforcing the positive supply and demand dynamics of the cryptocurrency.
