The administration of Donald Trump may create conditions in which staking in Ethereum ETFs attracts significant capital to American exchange-traded funds. This view was shared by YouHodler exchange executive Ruslan Lienha in an interview with The Block.
“Under the Trump administration, staking is likely to receive the necessary legal framework, paving the way for broader adoption, including institutional participation,” the expert noted.
However, in his opinion, adoption among institutional investors will be gradual. Volatility and operational risks may not suit all institutions.
According to analysts at Bernstein, the new leadership of the SEC will approve an ETH-ETF with staking capabilities. They estimate that Ethereum’s yield of 3%, with the potential to grow to 4–5%, is an attractive proposition amid the general decline in rates in the traditional financial industry.
Julio Moreno, head of research at the analytical firm CryptoQuant, explained to The Block journalists that he considers staking a significant driver of inflows into Ethereum ETFs.
“Institutional demand for Ethereum could increase significantly as ETFs with staking capabilities create a direct incentive for long-term holding, reducing the number of coins in circulation and enhancing Ethereum’s appeal as an income-generating investment,” the expert emphasized.
In the first 16 days of December, total inflows into spot Ethereum ETFs amounted to $2.3 billion. The cumulative balance stands at $14.28 billion.
According to K33 Research, on December 17, spot Bitcoin ETFs surpassed gold-based exchange-traded funds in assets under management, which had been on the market for 20 years.
gm!
U.S. Bitcoin ETFs flipped U.S. gold ETFs AUM yesterday. pic.twitter.com/OVYjKGXtuv
— Vetle Lunde (@VetleLunde) December 17, 2024
In November, the asset value in ETFs based on the first cryptocurrency was half that of similar structures based on the precious metal.
The surge in capital inflows into exchange-traded funds coincides with growing market optimism amid the arrival of the Trump administration.
Some experts believe that the success of Ethereum ETFs could push the second-largest cryptocurrency by market capitalization to a new all-time high above the record $4,878 set on November 10, 2021.
Earlier in December, the iShares Ethereum Trust (ETHA) from BlackRock and the Fidelity Ethereum Fund (FETH) purchased $500 million worth of Ethereum.