- Attestant executives believe ETH needs clearer messaging to attract investors.
- The executives emphasized the inclusion of staking in Ethereum ETFs.
Ethereum, often regarded as the second most valuable cryptocurrency after Bitcoin, is facing challenges in attracting institutional investors. Executives from Attestant, an institutional staking firm, believe that Ethereum’s current market performance doesn’t fully reflect its value.
According to Chief Commercial Officer Steve Berryman and Strategic Advisor Tim Lowe, of Attestant, Ethereum needs to refine its messaging to appeal to Wall Street. Lowe points out that Ethereum’s complex nature, described as a ‘digital oil’, makes it less open compared to BTC, which is often pitched as “digital gold.”
Lowe emphasizes that diversification is crucial for traditional investors who typically seek balanced portfolios. Ethereum could play a significant role in such diversification.
Another critical factor is the integration of staking into Ethereum ETFs. Staking allows investors to earn rewards by holding Ethereum, potentially offering around 4% annually.
This could make Ethereum ETFs more attractive. However, U.S. regulators, including the SEC, have so far rejected proposals to include staking in ETFs due to concerns about liquidity and regulatory issues.
Attestant Execs See ETH’s Potential in Improved Marketing
Berryman notes that while the exclusion of staking from current ETFs was a necessary compromise, its future inclusion could boost Ethereum’s appeal. He also highlights the challenge of liquidity, as staked ETH can take days to be withdrawn, conflicting with the need for quick asset redemption in ETFs.
Lowe also underscores Ethereum’s economic advantages over Bitcoin. While Bitcoin’s fixed supply of 21 million coins is often seen as a strength, Lowe argues that Ethereum’s model, which burns ETH through gas fees, effectively reduces its circulating supply.
In summary, Attestant executives are optimistic about Ethereum’s potential but stress the need for better marketing and strategic developments. By addressing these issues and potentially incorporating staking into ETFs, Ethereum could enhance its appeal to institutional investors.
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