Bernstein analysts noted that under the Donald Trump Presidency, spot Ethereum ETF products may be allowed to offer staking products.
With Donald Trump‘s inauguration in 2025, analysts at research and brokerage firm Bernstein believe staking yields might gain approval for spot Ethereum Exchange-traded Funds (ETFs) in the United States. Significantly, the incoming Trump administration is one of the four factors driving a resurgence of interest in Ethereum ETH $3 565 24h volatility: 4.3% Market cap: $431.61 B Vol. 24h: $47.85 B .
The broader crypto market has a combined capitalization of approximately $3.37 trillion. While this metric has fallen by 1.54% in the last 24 hours, it has spiked by 45% since Donald Trump won the presidential election.
The price of Bitcoin BTC $94 615 24h volatility: 2.8% Market cap: $1.88 T Vol. 24h: $79.16 B skyrocketed following the victory update, with Ethereum also mildly tagging along.
Over the past month, the price of Ethereum has jumped higher than that of Bitcoin and Solana. While BTC and SOL SOL $220.1 24h volatility: 7.2% Market cap: $105.12 B Vol. 24h: $9.29 B jumped by 41% and 36%, Ethereum has registered a 46% growth.
Even Ripple-associated XRP XRP $2.61 24h volatility: 35.6% Market cap: $149.26 B Vol. 24h: $59.96 B has outperformed Solana’s market cap after gaining up to 358% during the same period. Despite its outlook, ETH is still lagging in terms of year-to-date value.
Bernstein analysts, led by Gautam Chhugani, have proposed the bear case scenario that Ethereum is struggling to become a store of value like Bitcoin. It also faces intense competition from competing Layer-1 blockchains. In addition to these challenges, Ethereum’s reliance on Layer 2 solutions for scaling fragments the user experience.
In the long run, it drives retail users to other blockchains largely believed to be faster or even one particular Layer-2 protocol like Base. According to the analysts, these actions limit Ethereum’s fee growth and user retention.
Despite its underperformance, the analysts’ highlighted Ethereum’s risk-reward which is becoming more attractive. This is poised to gradually drive traction to the coin.
Based on Bernstein analysts’ opinion, they outlined four critical catalysts that could spearhead ETH’s growth in this cycle. One such factor is the potential for staking yield, originally removed from the United States spot Ethereum ETF approvals. With a pro-crypto president in the US, this feature might be added to the spot ETH ETF offering.
“We believe, under a new Trump 2.0 crypto-friendly SEC, ETH staking yield will likely be approved,” the analysts wrote.
Noteworthy, Hong Kong regulators are also considering approving staking features for spot Ethereum ETFs.
They believe this step will give them a global competitive edge in crypto, especially in the US. Hence, the regulators in the US may need to swiftly implement the staking feature to maintain its dominance in the market.
The Bernstein analysts noted that Ethereum’s yield, currently at 3%, could go as high as 5%, boosted by blockchain activities. Along the line, it would offer compelling returns for investors while benefiting asset managers through improved ETF economics.
Meanwhile, Ethereum ETF inflows are getting stronger by the day, suggesting renewed interest in the offering.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
