Bloomberg ETF analyst Eric Balchunas’ Insights on Ethereum (ETH)
Bloomberg ETF analyst Eric Balchunas, who joined crypto analyst Michael van de Poppe’s New Era Finance Podcast, made important statements about Ethereum (ETH).
Following the ETH ETF moratorium decisions from the SEC, Eric Balchunas assessed the impact of adding staking to Ethereum ETFs. Stating that the addition of staking will not affect the ETH price on its own, Balchunas said that staking will not increase inflows in ETFs unless there is a more sustainable rise in ETH.
Noting that the addition of staking will have a small impact on ETH ETF inflows, the analyst said, “It will only help, it will not have a major impact.” However, Balchunas noted that one of the main reasons why inflows into Ethereum ETFs have been weak since their launch in the US in July is that ETH has yet to experience a sustained rally. “Ethereum’s biggest problem is its price performance. ETH never gets into a nice long rally.”
The Bloomberg analyst said that for ETF inflows to pick up again, Ethereum needs a solid and genuine rally lasting several months, supported by a strong narrative. “Ethereum and ETFs need more than just the occasional good week to get stronger.”
Comparing Ethereum to Bitcoin, Balchunas stated that the price fell rapidly after the launch of ETH ETFs and, unlike Bitcoin ETFs, it was more difficult to recover. “Because when you launch an ETF and you get such poor performance at the beginning, it’s hard to follow through.”
Bloomberg ETF analyst James Seyffart said the deadline for Ethereum ETFs to receive approval for staking is the end of October, but added that possible intermediate dates before final approval or rejection are the end of May and the end of August.
*Not investment advice