- Ethereum ETFs may increase with staking yields of 3-5%.
- Ethereum’s strong DeFi position makes ETFs more appealing to investors.
Especially for Ethereum exchange-traded funds, Bernstein’s analysts expect significant growth since they’ve introduced staking yields. Such a move will attract institutional investors in search of yield-generating assets in today’s environment with low interest rates.
The report elaborates that the staking rewards of Ethereum, from 3% to 5% per annum, could add appeal to Ethereum ETFs by offering predictable income to investors. Given that staking already accounts for 28% of Ethereum’s total supply, very promising networks in terms of fundamental strength can be expected to make these ETFs even more appealing.
Ethereum’s Dominance in DeFi and Investment Potential
Its dominance in decentralized finance further boosts its investment potential. It hosts 63% of the value locked on all DeFi platforms and therefore is a critical player in the sector. A change from proof-of-work to proof-of-stake enhances Ethereum’s chances and becomes an attractive proposition for investors holding for long-term investments.
Bernstein also forecasts staking yields for Ethereum ETFs, which might soon be approved by a more friendly US Securities and Exchange Commission toward cryptocurrencies. Of course, the new regulatory attitude could go a long way in being just a precursor to big announcements in the space of Ethereum ETFs.
Bernstein analysts can’t avert their eyes from the reality that Ethereum didn’t replace Bitcoin in 2024. For one, money put into Ethereum ETFs surged by more than $1.1 billion since the U.S. election makes a point, lots of investors really care. From time to time, Ethereum is going to outperform Bitcoin. Confidence in the technology and position in the market is growing.
As more people use the Ethereum blockchain, the staking yield will go up and make the returns even better. The Ethereum ETF will continue to rise in value in the following months due to a strong investment base and supply factors.
