Analyst says Ethereum ETF staking needs sustained rally

Bloomberg ETF analyst Eric Balchunas said that allowing staking for spot Ethereum (CRYPTO:ETH) ETFs in the U.S. will have limited impact on inflows unless Ether experiences a prolonged price rally.  

Speaking on the New Era Finance Podcast on April 29, Balchunas explained that staking approval would “help - it can’t hurt,” but the key driver for inflows remains Ether’s price performance.  

He noted that since the launch of Ether ETFs in July 2024, inflows have been weak partly because Ether has not sustained a significant upward trend.  

“The bigger problem with Ethereum is performance; it just doesn’t ever go on a nice long rally,” Balchunas said.  

He pointed to the December 2024 price surge, when Ether reached $4,107, as an example of how inflows increased during a strong rally.  

From November 22, 2024, spot Ether ETFs saw a 19-day positive inflow streak totaling about $2.44 billion, correlating with the price rally triggered by broader crypto market momentum.  

However, since that peak, Ether’s price has declined about 56% to around $1,809 at the time of publication, coinciding with reduced ETF inflows.  

Balchunas emphasised that for inflows to pick up again, Ether needs “a multimonth run” combined with a “strong narrative” beyond short-term price spikes.  

He contrasted Ether’s ETF launch with spot Bitcoin (CRYPTO:BTC) ETFs, which saw new all-time highs within two months of launching in January 2024, contributing to strong inflows.  

U.S. issuers are still awaiting SEC approval to allow Ether ETFs to stake tokens, with possible decisions expected by late 2025.  

“It needs something that is more than just a good week here and there,” Balchunas concluded.

At the time of reporting, the Ethereum price was $1,796.07.