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Key takeaways<\/strong><\/p>\n Approving staking for spot Ether exchange-traded funds (ETFs) in the US may have a minimal impact on inflows unless Ether sees a sustained rally, says Eric Balchunas<\/p>\n<\/li>\n ETH dropped significantly in price after the launch of the ETFs last year, unlike spot Bitcoin ETFs, which saw new all-time highs just two months after launching.<\/p>\n<\/li>\n Balchunas said that for inflows to increase again, ETH would need a multimonth run and a strong narrative.<\/p>\n<\/li>\n<\/ul>\n Spot Ethereum ETFs being able to stake a portion of the tokens under their control may not help garner inflows without a more sustained rally in the token\u2019s price, says Bloomberg ETF analyst Eric Balchunas.<\/p>\n Balchunas said<\/a> on an April 29 episode of the New Era Finance Podcast that staking being approved for Ether (ETH<\/a>) ETFs would have \u201ca little\u201d impact on inflows, adding \u201cit\u2019s only going to help \u2014 it can\u2019t hurt.\u201d<\/p>\n However, Balchunas noted that one of the main reasons for the weak inflows into Ether ETFs since their July launch in the US is that ETH has yet to sustain a prolonged rally.<\/p>\n \u201cThe bigger problem with Ethereum is performance; it just doesn\u2019t ever go on a nice long rally.\u201d<\/p><\/blockquote>\n He added that when Ether\u2019s price surged during a run in December, there was a direct correlation with an increase in inflows.\u00a0<\/p>\n Donald Trump\u2019s election win in November sparked a crypto market rally which saw ETH surge 71% to reach $4,107 on Dec. 16.\u00a0<\/p>\n From Nov. 22, spot Ether ETFs saw a 19-day positive inflow streak, amassing approximately $2.44 billion in inflows, according<\/a> to Farside data.<\/p>\n However, since tapping the $4,107 price level, Ether entered a downtrend and has since fallen 56% to trade around $1,809 at the time of publication, according<\/a> to CoinMarketCap data.<\/p>\n Balchunas said that for inflows to pick up again, Ether would need a \u201cmultimonth run\u201d paired with a \u201cstrong narrative.\u201d<\/p>\n \u201cIt needs something that is more than just a good week here and there,\u201d he added.<\/p>\n Balchunas noted that after the Ether ETFs launched, the price \u201cwent down quickly,\u201d making any recovery difficult, unlike spot Bitcoin ETFs, which saw Bitcoin (BTC<\/a>) hit a new all-time high just two months after they launched in January 2024.<\/p>\n \u201cWhen you launch an ETF, and you have that sort of performance out of the gate, it\u2019s tough,\u201d he said.<\/p>\n Related: <\/strong><\/em>Ethereum\u2019s \u2018capitulation\u2019 suggests ETH price is undervalued: Fidelity report<\/strong><\/em><\/a><\/p>\n US ETF issuers are still waiting for the<\/a> US Securities and Exchange Commission to allow Ether ETFs to offer staking after filing numerous requests for permission<\/a> earlier this year<\/p>\n Bloomberg ETF analyst James Seyffart said that \u201cit\u2019s possible they could be approved for staking early, but the final deadline is at the end of October.\u201d<\/p>\n \u201cPotential intermediate deadlines before the final approval (or denial) are in late May and late August,\u201d he added.<\/p>\n\n
ETFs to do well on price rally<\/h2>\n