Institutional Interest in Ethereum May Increase, According to Attestant Executives
Executives at institutional staking company Attestant claim that with well-crafted marketing, Ethereum’s true value may be revealed and Wall Street investors could be persuaded to buy spot Ether ETFs. Although there is little demand for US ETFs and there have been concerns about underperformance in ETH’s price movement, Attestant’s chief business officer Steve Berryman and strategic consultant Tim Lowe declared they are still enthusiastic about Ether. Nonetheless, they have their sights set on several significant advancements that may pique interest in the asset again over a longer period, such as improved packaging, diversification, and tokenomics.
Institutional investors today have a dominant mindset toward digital assets when it comes to Bitcoin. However, according to Lowe, Ethereum can easily capture part of this market share with a combination of sophisticated marketing and a more cohesive value proposition, which would eventually cause institutional investors who want to diversify into the asset class to naturally appreciate the asset.
I think the number one, simple catalyst for Ethereum is diversification. In traditional finance, almost everyone wants to have a more diversified portfolio. We know digital assets are becoming an investable asset class for traditional investors, so it’s an easy step to say, okay, we should diversify. How do you diversify? The next step is into ETH.
Lowe
Ethereum ETFs Shaken by $564 Million Net Outflows: Staking Could Be a Key Factor for the Future
Since their July introduction, US Ether ETFs have failed to live up to investor expectations. ETF expert Eric Balchunas accurately predicted that the funds would perform “small potatoes” in comparison to Bitcoin ETFs. Since its introduction, the nine Ether ETFs have collectively suffered a net outflow of $564 million. On September 10, they ended an eight-day run of trading without net positive inflows into the funds.
According to Berryman, staking is another important selling factor for Ethereum over the long run. Staking would enable owners of Ether ETFs to buy ETH through a fund and earn roughly 4% annually. The SEC denied requests from several fund managers, including Franklin Templeton, Fidelity, and BlackRock, to include staking in their ETFs. Although Berryman acknowledged that staking was excluded at the time and that its introduction would be perfect for Ethereum, he claimed it was a necessary sacrifice for funds to make.
It makes a lot of sense to introduce staking at some point. If you’re going to hold Ethereum, then why wouldn’t you also stake it? With these ETFs, you need to be able to get in and out quickly and there’s not a finite staking period. If there’s a long queue, then it can take a long time,
Berryman
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