Ethereum's price has been stable around $2,000, reflecting a "narrative gap," according to analysts. Callan Sarre notes that while Layer 2 solutions have scaled Ethereum, reducing fees by over 90%, the long-term value accumulation remains uncertain. The push for zero-knowledge technologies and privacy features is challenging the traditional transparency of Ethereum, which may hinder institutional adoption unless privacy is integrated at the protocol level.
Meanwhile, Ethereum ETFs are evolving with staking rewards. Grayscale began distributing these rewards to U.S. ETF holders in January, and BlackRock has applied for a staked ETH fund. Jonatan Randin from PrimeXBT highlights that this development transforms Ethereum ETFs from simple price exposure to income-generating products, with the options market introducing new dynamics like covered calls and dealer hedging.
Ethereum Faces Narrative Shift as Staking Transforms ETFs
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