Ethereum ETFs Surge to $2.2 Billion, Outpacing Bitcoin with Staking-Boosted Yields
December 23, 2024Ethereum ETFs have seen an impressive surge, experiencing seven consecutive weeks of record incoming flows, peaking at $2.2 billion for the week of November 26, 2024.
This strong performance has outpaced that of Bitcoin since November 2024, highlighting robust market interest in Ethereum.
The U.S. SEC's approval of ETFs that combine Bitcoin and Ethereum is expected to further boost capital inflows into Ethereum products.
Experts believe that the trend of increasing investments in Ethereum ETFs is sustainable, largely due to the potential for staking-boosted yields.
Currently, staking offers an annualized yield of approximately 3.35%, enhancing the appeal of Ethereum ETFs for investors seeking passive income.
Bernstein Research notes that integrating staking into Ethereum ETFs could attract institutional investors looking for diversification, despite the added complexity.
A report from Santiment reveals a record concentration of Ethereum holdings among whales, indicating strong institutional confidence in the asset.
Looking ahead, VanEck predicts that Ethereum's price could reach $6,000 by the fourth quarter of 2025, driven by increased adoption and network activity, particularly in AI applications.
Nate Geraci, president of The ETF Store, draws parallels between the current flow patterns of Ethereum ETFs and those of gold, anticipating an acceleration in growth.
However, stakers should be aware of the risk of 'slashing' if validators misbehave, which poses a challenge for Ethereum holders.
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Cointribune • Dec 22, 2024
Why the Ethereum ETF could beat Bitcoin as early as 2025