Mechanism Co-founder: Ethereum spot ETF will not drive up the price of the currency

Andrew Kang, co-founder and partner of crypto venture capital firm Mechanism Capital, posted on social media that unless Ethereum develops a convincing way to improve its economic conditions, the price of Ethereum will not get much upside from the passage of the spot ETF. It is expected that the capital flow of the Ethereum spot ETF will be lower than the general market expectations, because the approval of the ETF was unexpected, and the issuer did not have much time to convince large holders to convert their ETH to the ETF. On the other hand, it is less attractive for holders to convert ETH because they need to give up staking or use the income of ETH as DeFi collateral. In addition, Andrew Kang expects ETH/BTC to continue to trend downward, with the ratio between 0.035 and 0.06 in the next year. Although the sample size is small, the market does see ETH/BTC hit lower highs in each cycle, so this should not be surprising.