The Ethereum spot ETF has not performed satisfactorily since its launch, and at the same time, the currency price performance has also been unsatisfactory. But does this mean that’s all there is to Ethereum? Executives from institutional-grade pledge company Attestant revealed in the report that they believe Ethereum has more cards to play, so the prospect of Ethereum ETF is more attractive. But they also admit that Ethereum may need more marketing and more narratives to get Wall Street to pay for it.
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ToggleThe value proposition needs to be unified. What exactly is Ethereum?
Executives at the institutional pledge company Attestant said that despite people complaining about Ethereum's weak price trend and spot ETFs in the US market not paying much, they continue to be optimistic about Ethereum. And pointed out that the market does not reflect the true value of Ethereum. Such value can be addressed by marketing more information about Ethereum to attract Wall Street investors to buy Ethereum spot ETFs.
Tim Lowe, the company's strategic advisor, said: "Bitcoin sold the product to Wall Street with a simple value proposition of 'digital gold', occupying the leading position in digital assets." However, Tim Lowe believes that through sophisticated marketing, Combined with a more unified value proposition, Ethereum could easily gain some market share. To promote it to institutional investors with asset diversification.
Tim Lowe further pointed out that there is another key to promoting Ethereum to these institutional investors who focus on asset diversification, and that is a more unified value proposition. Diversity can only be achieved when non-blockchain users can understand it.
"Is this an app store? Is it a blockchain-based Internet, or is it digital oil?"
Tim Lowe used this metaphor to contrast the value proposition of Bitcoin’s digital gold.
He added that now only people who are really interested in blockchain would want to know about Ethereum, and many people who buy Bitcoin ETFs only regard it as a very good performing digital asset. Since its launch, the nine Ethereum ETFs have experienced a total net outflow of US$564 million. On September 10, it broke the fund's record of no net inflows for eight consecutive trading days.
Staking has become a major selling point of Ethereum: 4% annualized
In the long run, staking will be another major selling point of Ethereum. This will allow Ethereum ETF investors to earn approximately 4% per year by holding ETH through the fund. Several fund management companies, including BlackRock, Fidelity and Franklin Templeton, tried to obtain regulatory approval to pledge ETH held in their ETFs , but were rejected by the SEC .
Attestant said excluding staking was a necessary sacrifice for the fund at the time. But they said it would be an ideal solution for introducing it in the future. He said that in addition to the regulatory risks of securities laws when pledging ETH, liquidity is also a major challenge. “With these ETFs, you need to be able to get in and out quickly. If the mainnet is congested, it could take a long time,” they added.
Ethereum destroys the gas fee model and is expected to become a scarce asset
However, Tim Lowe added that even if staking is not included as an option in spot ETFs, the mechanism of Ethereum will be a major reason for attention. Due to the design of the upper limit of 21 million Bitcoins, it is regarded as a scarce asset. But he believes that Ethereum’s design of burning gas fees should actually be more attractive to investors who like scarcity.
“When you pay gas fees with ETH, you are actually taking it out of circulation, and Bitcoin does not have this function,” he said.
When the cycle lengthens, the continuous halving of Bitcoin’s block rewards every four years will bring serious sustainability problems, and Ethereum’s development model can avoid this problem. He added: “In terms of pure numbers, less Ethereum is issued each year than Bitcoin.” In the long run, Ethereum’s prospects are more attractive for value-driven investors.
