Originally published on: November 07, 2024
Following Donald Trump’s victory in the US presidential election, experts believe that the cryptocurrency market, particularly Ethereum, could see a boost in financial products. Analysts suggest that Trump’s administration could lead to increased innovation in the crypto industry, with the potential launch of the first staked Ether ETF.
According to Edward Wilson, an analyst at Nansen, the introduction of more Ether-based ETFs could drive the price of Ether to surpass its previous peak of $4,800. This milestone was last recorded nearly three years ago in November 2021.
In the world of cryptocurrency investing, ETF inflows play a pivotal role in driving prices higher. For Bitcoin, ETF inflows contributed to about 75% of new investments when its price surged above $50,000 in February 2024. This occurred shortly after spot BTC ETFs became available for trading in the US.
While the European market may lead the way in introducing an Ether staking-related ETF, experts like Charles d’Haussy, CEO of the dYdX Foundation, view this development as a significant milestone for the industry. D’Haussy remains optimistic about the future of Ether ETFs, emphasizing the potential implications of an Ether staking ETF versus a staked Ether ETF.
Despite the anticipation surrounding Ether ETFs, some investors have expressed disappointment with the performance of US spot Ether ETFs, which saw over $489 million in cumulative net outflows since their launch. This trend was foreseen by analysts like Eric Balchunas, who suggested that Ether ETFs may play a secondary role compared to established spot Bitcoin ETFs in terms of investor inflows.
As the cryptocurrency market continues to evolve, the launch of new financial products like Ether ETFs could open up exciting investment opportunities for traders and investors alike. Stay informed about the latest developments in the DeFi space by subscribing to the Finance Redefined newsletter for exclusive insights and analysis delivered weekly.
