Donald Trump’s victory in the United States presidential election on Nov. 5 could pave the way for more diversified cryptocurrency financial products — specifically for the world’s second-largest cryptocurrency, Ether.
Trump won the presidential election held on Nov. 5, which is seen as a net positive for crypto regulations over the next four years.
A Trump administration will likely embrace more crypto industry innovation, including the debut of the first staked Ether (ETH) exchange-traded fund (ETF), according to Edward Wilson, an analyst at Nansen.
The analyst told Cointelegraph:
“As the regulatory environment will likely be pro-crypto, we may even see a staked ETH ETF approved early in this new administration, which will fully leverage the benefits of ETH as an asset. If this occurs, then ETH will become an exciting asset to watch. Put differently, ETH is cool again.”
More Ether-based ETFs could help Ether’s price rise above its previous all-time high of $4,800, recorded on Nov. 16, 2021, nearly three years ago.
ETH/USD, all-time chart. Source: Cointelegraph
For Bitcoin (BTC), ETF inflows accounted for about 75% of new investment in the world’s first cryptocurrency when its price rose above $50,000 in February 2024, a month after spot BTC ETFs debuted for trading in the US.
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Europe may front-run the US on the first Ether-staking-related ETF
The European market could be the first to see the introduction of an Ether staking-related ETF.
Speaking exclusively to Cointelegraph at EthCC, Charles d’Haussy, CEO of the dYdX Foundation, said that the Ether staking ETF would be a significant industry milestone. He said:
“The US is probably not ready for that, but the European market or some adjacent market will give us a way into Ethereum staking ETFs.”
D’Haussy added that he is bullish on the next Ether ETF, whether that will be an Ether staking ETF or staked Ether ETF, which could have different implications. He explained:
Charles d’Haussy, dYdX CEO, interview with Zoltan Vardai. Source: Cointelegraph
However, some investors are disappointed by the performance of the US spot Ether ETFs, which recorded over $489 million worth of cumulative net outflows since launch, Farside Investors data shows.
Ether ETF flows, USD, million. Source: Farside Investors
The stagnating inflows were predicted by some analysts, even before the spot Ether ETFs launched. Notably, Eric Balchunas, senior ETF analyst at Bloomberg, previously told Cointelegraph that the Ether ETFs may only be a “sidekick” to the more established spot Bitcoin ETFs in terms of inflows.
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