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ETH staking ETFs have potential to surpass Bitcoin ETF: Bitcoin Suisse

source-logo  crypto.news 13 December 2024 21:26, UTC
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Crypto finance service provider Bitcoin Suisse says the crypto bull market will continue in 2025, and projects that Ethereum staking exchange-traded funds could outperform Bitcoin.

Bitcoin Suisse shared the forecast in its outlook for the next year, with key points including the U.S. adopting a Bitcoin ($BTC) strategic reserve as other countries follow and $BTC trading to an all-time high above $180’000. The Swiss-regulated crypto startup also foresees financial giants stepping up to unveil institutional rollups on Ethereum ($ETH).

However, one of its biggest projections for 2025 is that Ethereum-staking ETFs could surpass Bitcoin ETFs.

“While Bitcoin ETFs shattered records with $32B in net flows and IBIT now approaching $50B in AUM in just 225 trading days, we project a structural shift of flows into $ETH ETFs in the post-election environment.”

Bitcoin Suisse Outlook 2025.

Read more: Bitwise CIO: Ethereum ETFs came too early

Bitcoin Suisse points to key fundamentals for its Ethereum ETFs 2025 prediction. One of these is the risk-reward proposition Ether ETFs offer as institutional demand surges.

An example is the flip in capital flows in November, which had Ethereum ETFs outpacing Bitcoin ETFs in daily flows – $332.9 million for $ETH compared to $320 million for $BTC.

$ETH’s underperformance was more due to Bitcoin having a head start as an established narrative. The regulatory headwinds that surrounded staking yields also contributed. Removing these bottlenecks could cause $ETH ETFs to take off massively.

“Under the new Trump administration, we expect a swift approval for $ETH staking in ETFs, eventually unlocking a 3-4% yield, which strongly caters to institutional allocators and is particularly compelling in a declining rate environment. We project that staking yields will disproportionately benefit Ethereum and emerge as the primary catalyst for sustained constructive flows into $ETH ETFs.”

Other projections for 2025 include the approval of new crypto ETFs, the startup predicts. Solana (SOL) and $XRP ($XRP) lead this race, having seen multiple issuers file applications with the U.S. Securities and Exchange Commission.

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