PANews December 2 news, according to CoinDesk, on Monday, brokerage firm Bernstein said in a research report that although Ethereum has underperformed its larger competitor Bitcoin so far this year, the inflow of Ethereum ETF has turned around, indicating that this period of poor performance may be over.
The brokerage noted that BlackRock’s spot Ethereum ETF saw inflows of $250 million on Friday, while the asset manager’s larger spot Bitcoin ETF saw inflows of just $137 million. “This creates a favorable supply-demand dynamic for Ethereum,” wrote analysts led by Gautam Chhugani. Staking yields could be another tailwind for the cryptocurrency. Bernstein noted that the initial Ethereum spot ETF filing did not include yields due to regulatory restrictions. “In the new Trump 2.0 era, with a crypto-friendly SEC, Ethereum staking yields are likely to be approved,” the authors wrote. “With increased activity on the Ethereum blockchain, yields can grow to 4%-5%.”
Ethereum blockchain activity is on the rise, the report said, and the network remains the preferred platform for asset tokenization and stablecoins. Bernstein said that after Ethereum transitioned to the Proof-of-Stake consensus mechanism, the supply of Ether has been "stagnant" and the total amount remains at 120 million. Ethereum transaction fees provide stakers with a return of about 3%, which has led to about 28% of the Ether supply being locked in staking contracts and another 10% of the supply being locked in deposit and loan contracts. Nearly 60% of Ethereum has not changed hands in the past 12 months, indicating a "solid investor base", which further reinforces the positive supply and demand dynamics of cryptocurrencies.
