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Author: Tom Mitchelhill, CoinTelegraph; Compiled by: Tao Zhu, Bitchain Vision
Executives at Attestant, an institutional equity investment firm, saidThe market does not reflect the true value of Ethereum, and this problem can be solved through comprehensive information transmission to attract Wall Street investors to rush to buy spot Ethereum Exchange Trading Funds (ETFs).
Attestant’s chief commercial officer Steve Berryman and strategic consultant Tim Lowe pointed out that they are still bullish on Ethereum.
However, they have turned their attention to several key developments, including better marketing, diversification and token economics, which may spark new interest in the asset for a longer period of time.
However, Lowe believes that Ethereum can easily win some of its attention through refined marketing and a more unified value proposition, which will allow it to naturally gain value from institutional investors who choose to diversify investing in the asset over time..
“I think the primary, simple catalyst for Ethereum is diversification. In traditional finance, almost everyone wants to have a more diversified portfolio,” Lowe said.“We know that digital assets are becoming a category of asset that traditional investors can invest in, so it’s easy to say, well, we should diversify.”
“How to diversify? The next step is to get into ETH.”
But only by making Ethereum simpler and non-cryptocurrency natives can we achieve diversification.
“Is it an app store? Is it a blockchain-based internet, or is it a ‘digital oil’?” Lowe asked.
“At present, Ethereum will only attract the attention of those who are interested—Many people who buy Bitcoin ETFs are just looking for a very good performance digital asset.” Lowe added.
“But ultimately, we will see more refined information and ETH will permeate a wider awareness,” he said.
Since its launch in July, U.S. Ethereum ETF has performed lower than market expectations.
Since its launch, the nine Ethereum ETFs have had a total net outflow of $564 million, and on September 10, they broke the record of no net inflows for eight consecutive trading days.
Compared with Bitcoin ETFs, Ethereum ETFs have fewer circulations.Source: FarSide
Pledge will bring great victories
Berryman saidStaking is another major selling point in Ethereum’s long-term development.This will allow Ethereum ETF investors to earn about 4% of their annual earnings by holding ETH through funds.
Several fund managers, including BlackRock, Fidelity and Franklin Templeton, tried to get regulatory approval to include pledges into their ETFs, but were rejected by the SEC.
Berryman said excluding pledges was a sacrifice the fund had to make at the time, but added that it would be an ideal situation if Ethereum introduced pledges in the future.
“It makes sense to introduce staking at some point. If you want to hold Ethereum, why not stake it too?”
In addition to concerns that pledges may be regulated by the U.S. securities laws, Berryman saidOne of the biggest challenges for ETF issuers looking to provide staking services is liquidity issues, especially in the short term.
The pledged ETH can take several days to withdraw – a problem for issuers who need to quickly redeem their underlying shares as required.
Ethereum is “harder” than Bitcoin
Lowe added that even if staking is never an option, Ethereum’s own issuance plan is enough to be a reason to invest in ETH.
Although many people think Bitcoin is an asset that is “harder” than Ethereum, as Bitcoin’s supply cap is 21 million BTC, Lowe said that for investors attracted by scarcity, Ethereum actually hasA better economic model.
“When you pay gas fees with ETH, you actually take it out of circulation, and Bitcoin doesn’t,” he said.
“It won’t be sold to miners. It will be destroyed, thus reducing the supply of circulation.”
Lowe said that Bitcoin’s block rewards are halved every four years, which will bring significant sustainability issues in the long run, and Ethereum’s development model can avoid this.
“From purely digital perspectives, less Ethereum is issued every year than Bitcoin,” Lowe said, which is a more attractive prospect for value-driven investors in the long run.
