Key Points
- Ethereum’s price remains under $2,500 due to a significant decrease in revenue and low demand for spot Ether ETFs.
- Institutional players, such as Attestant, remain optimistic about Ethereum’s future despite current market conditions.
Despite considerable losses and a lackluster market performance, Ethereum continues to garner support from institutional entities. The price of Ethereum has been trading below $2,500, largely due to a significant decrease in Ethereum’s revenue and a low demand for spot Ether ETFs.
Attestant’s Bullish Stance on Ethereum
Institutional staking firm Attestant has stated that the current market does not reflect Ethereum’s true value. Steve Berryman, Attestant’s chief business officer, and strategic adviser Tim Lowe believe that a more refined marketing strategy could pique Wall Street’s interest in Ethereum once again. Despite the low demand for spot Ether ETFs and complaints of underperformance, Attestant remains optimistic about Ethereum’s future.
According to Berryman and Lowe, Ethereum needs improved marketing, diversification, and tokenomics to reignite long-term interest in the asset. Currently, Bitcoin holds the attention of institutional investors due to its reputation as “digital gold”. However, they believe that Ethereum could capture some of this attention with a better value proposition and refined marketing. This would attract institutional investors looking to diversify their digital asset holdings over time.
Ethereum’s Potential for Diversification
Lowe stated that diversification is a significant catalyst for Ethereum. He believes that as digital assets become a viable investment class for traditional investors, the desire for portfolio diversification will drive interest in Ethereum. However, for this to occur, Ethereum’s functionality needs to be simplified for investors to understand.
Staking as a Selling Point for Ethereum
Berryman suggested that staking could be another major selling point for Ethereum in the long run. In addition, Ether ETFs could earn an additional 4% per year by owning Ethereum through a fund. However, fund managers, including BlackRock, Fidelity, and Franklin Templeton, were denied SEC approval to include staking in their ETFs. According to Berryman, introducing staking in the future would be an ideal development for Ethereum, despite the challenges it could pose under US securities laws.
Berryman also noted that another significant challenge for ETF issuers was liquidity. He explained that with ETFs, investors need to be able to quickly buy and sell, and if there’s a long staking period, it could delay this process.
