Donald Trump's return to the White House is not limited to classic political questions. For the crypto industry, his election could redefine the contours of financial regulation, in particular for financial products linked to Ether (ETH), the second crypto in market capitalization. Indeed, the possibility of an ETF based on staked Ether could constitute a decisive step for the sector. Thus, some analysts, such as Edward Wilson of Nansen, believe that such a product could diversify investment options, but also strengthen Ether's position as a strategic asset. This scenario, although conditioned by the political context, could change the dynamics of the crypto market in the United States and open up new perspectives for investors.
Towards an Ether ETF staked under the Trump era?
The new election of Donald Trump is seen as an asset for the crypto industry in the United States. According to Nansen analyst Edward Wilson, this change in leadership could provide significant support for innovation in the crypto sector. Wilson says “a pro-crypto administration could enable rapid approval of an ETF based on staked Ether,” a product that capitalizes on the specificities of Ether as a staked asset. This type of fund would offer investors the opportunity to benefit from the advantages of staking without confronting the technical complexities often linked to this activity.
The potential of this ETF goes beyond diversifying investment options. Indeed, Bitcoin-based ETFs, already in circulation, have played a major role in the growth of crypto investments. Thus, the price of Bitcoin rose above $75,000. A staked Ether ETF could generate similar enthusiasm for Ether, and potentially propel its price beyond its previous all-time high of $4,800, reached in November 2021. “The structure of the staked ETF would leverage the strengths of the Ether”, precise-he. Furthermore, it indicates that this innovation could propel Ether to new heights. This perspective makes Ether a particularly closely watched asset, which could benefit from new momentum under the Trump presidency.
Prospects in Europe and challenges of the American market
While the American market could well see the birth of this staked Ether ETF, some investors believe that Europe could take a head start. Charles d'Haussy, CEO of dYdX Foundation, shared at EthCC in Paris, the major event dedicated to Ethereum, that the European market is “probably more mature” to welcome this type of innovation. According to him, Europe would be ready to authorize such products well before the United States, due to a more flexible approach to crypto regulation on the continent. D’Haussy says he is optimistic about what’s next for Ether-linked ETFs.
However, in the United States, the first spot ETFs in Ether, launched earlier this year, did not meet with the expected success. They have seen more than $489 million in net outflows since going public, according to data from Farside Investors. This lack of enthusiasm calls into question the real appetite of investors for Ether compared to Bitcoin, while some analysts, such as Eric Balchunas of Bloomberg, qualify Ether ETFs as simple “sidekicks” of products linked to Bitcoin. Such a situation reflects the challenges that the staked Ether ETF will have to overcome to capture the interest of institutional investors.
The return of Trump could well be a development opportunity for the crypto industry in the United States, with significant repercussions for Ether if a staked ETF were to see the light of day. However, the path is strewn with pitfalls, both in terms of market acceptance and international competition, particularly with Europe. Between opportunity and uncertainty, the future of Ether seems to hang on this momentous decision.
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