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BTC $67,254.06 -0.88%
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BCH $558.14 +0.02%
LINK $8.77 +0.27%
HYPE $28.93 -2.37%
AAVE $126.08 +1.19%
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ether

Analyst: Ethereum is caught in a "dilemma between two narratives," as staking transforms Ethereum ETFs into income-generating products

According to Forbes, over the past few weeks, the price of Ethereum has continued to fluctuate narrowly around $2,000. Several market observers have pointed out that this reflects Ethereum being caught in a "narrative gap."Analyst Callan Sarre stated, "For the past few years, the story of Ethereum has been simple—L2 carries the scale, while the base layer remains lean and secure. Now, L2 has processed billions of dollars in weekly trading volume, with fees dropping over 90%, but the question is where long-term value accumulates." The market is pushing zero-knowledge technology and privacy features closer to the base layer, "for traders clinging to old models, it feels like the ground is shifting beneath their feet."Sarre emphasized the contradiction between transparency and institutional demand: "Today, every Ethereum transaction is completely public and transparent, which doesn't work for CFOs managing corporate treasuries or funds deploying nine-figure positions. If Ethereum is to attract trillions in institutional capital, privacy must be built into the protocol layer."Grayscale began distributing staking rewards to U.S. Ethereum ETF holders in January, and BlackRock has also applied for its staking ETH fund. PrimeXBT senior market analyst Jonatan Randin stated, "This changes the nature of Ethereum ETFs—not just price exposure, but income-generating products." He emphasized that the growth of the options market is reshaping the asset's volatility characteristics, "the options market around spot ETFs introduces dynamics like covered calls and dealer hedging that didn't exist two years ago."

CoinShares: Global crypto ETP sees four consecutive weeks of outflows, Bitcoin and Ethereum under pressure

According to The Block, CoinShares' latest report shows that global crypto asset ETPs have experienced net outflows for the fourth consecutive week, with approximately $173 million flowing out last week. Over the past four weeks, total outflows have reached $3.74 billion, indicating that the trend of capital withdrawal from the market continues.The report notes that although the weekly outflow has slowed from a peak of about $1.7 billion at the beginning of the month, the overall selling pressure has not reversed. James Butterfill stated that the current data reflects that crypto fund capital has been undergoing a withdrawal cycle for a continuous month. In terms of trading activity, ETP trading volume has significantly cooled, dropping from a record $63 billion the previous week to $27 billion, indicating that speculative trading enthusiasm has declined in tandem with capital outflows.In terms of capital flow, approximately $575 million was recorded as inflow at the beginning of last week, but this was followed by about $853 million in outflows, primarily influenced by weakening prices. On Friday, boosted by weaker-than-expected CPI data, there was a brief inflow of about $105 million. There is a clear regional divergence. The U.S. market recorded approximately $403 million in outflows last week, while other regions collectively saw about $230 million in inflows, with Germany leading at approximately $115 million, followed by Canada at about $46.3 million and Switzerland at about $36.8 million, indicating that capital demand is shifting towards overseas markets.In terms of asset classes, Bitcoin-related investment products saw the largest outflows last week, totaling about $133 million; short Bitcoin products also experienced outflows of about $15.4 million over the past two weeks, a phenomenon that CoinShares notes typically occurs when the market approaches a cyclical low. Ethereum funds recorded outflows of about $85.1 million, while some altcoins still attracted inflows, with XRP seeing inflows of about $33.4 million, Solana about $31 million, and Chainlink about $1.1 million.In terms of prices, Bitcoin fell nearly 2% over the past week, remaining below the $70,000 mark; Ethereum, after two weeks of significant outflows, is still below the $2,000 level, and overall market sentiment remains cautious.
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