TL;DR
Bernstein highlights that the potential approval of an Ethereum ETF with staking in the U.S. could raise staking yields from 3% to 4-5%.
Inflows into ETH ETFs have surpassed those of BTC since November, reflecting greater confidence in ETH’s supply and demand dynamics.
Ethereum leads in Total Value Locked (TVL) with $89 billion.
Bernstein, a renowned research and brokerage firm, has outlined several factors that could drive Ethereum’s performance in the coming months. Among these is the potential approval of an Ethereum ETF offering staking rewards in the United States, a development that could be pivotal in attracting institutional investor interest. Under a more crypto-friendly administration, such an ETF could represent a turning point for the ETH ecosystem.
Currently, Ethereum ETFs in Hong Kong already include staking, but similar products have not yet been approved in the U.S. If this authorization is achieved, staking yields could increase from the current 3% to a range of 4% to 5%, according to analysts.
This increase would be particularly attractive given the decline in interest rates, offering investors a profitable option in the crypto market. Additionally, introducing this feature in ETFs would enhance their economic structure, providing additional margins for asset managers and creating incentives for large institutional investors to expand their exposure to Ethereum.
Ethereum ETFs Outperforming Bitcoin ETFs
Another crucial factor, according to Bernstein, is the growing strength of inflows into Ethereum ETFs, which have begun to surpass Bitcoin ETFs in net terms. This shift, evident since November, demonstrates increased investor confidence in ETH’s prospects, backed by solid supply and demand dynamics.
Of the 120 million ETH in circulation, 28% is currently staked, while 10% is locked in lending and deposit platforms. This leaves 60% of the supply unmoved in the past year, which analysts see as indicative of a resilient investor base.
The Ethereum network also leads in terms of Total Value Locked (TVL), accounting for 60% of the market with a total of $89 billion. This level of trust, from both large institutional and retail investors, reinforces its market position. With ETH’s price growing 47% over the past month, the launch of a staking-enabled ETF could solidify this bullish momentum
