Staking Alone Won’t Save Ethereum ETFs: Bloomberg Analyst

Bloomberg analyst Eric Balchunas said on a recent podcast that the potential approval of staking for spot Ethereum ETFs may only have a small impact unless accompanied by a sustained price rally. He referred to Ethereum’s disappointing post-launch performance and pointed to the December 2024 price surge — driven by Trump’s election win — as the only period of notable ETF inflows. Balchunas now believes that ETH needs a multi-month rally and compelling narrative to rekindle investor interest. 

Meanwhile, Nasdaq filed to list a Dogecoin ETF from 21Shares, amid broader ETF proposals covering Solana, XRP, and other altcoins. The SEC also recently delayed decisions on Dogecoin and XRP ETFs until June. Despite a wave of over 70 crypto ETF applications, analysts still warn that market demand may not match Bitcoin’s. 

Ethereum ETFs Need More Than Just Staking

Spot Ethereum ETFs may gain the ability to stake a portion of the Ethereum they hold, but this development alone is unlikely to attract major inflows unless there’s a more sustained rally in the token’s price. This is according to Bloomberg ETF analyst Eric Balchunas. 

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A crypto ETF is a publicly traded investment fund that tracks the price of a cryptocurrency or a basket of cryptocurrencies. It allows investors to gain exposure to crypto assets like Bitcoin or Ethereum without directly buying or storing the coins themselves. Instead, they can buy shares of the ETF on traditional stock exchanges, making it much easier and more accessible to invest in crypto through familiar financial channels.

On the April 29 episode of the New Era Finance Podcast, Balchunas acknowledged that while staking approval would have ”a little” positive impact — and certainly wouldn’t hurt — the real issue lies in Ethereum’s lackluster performance since ETF launch.

Balchunas pointed out that Ethereum struggled to sustain any long-term upward momentum, which has been a key reason behind the very tepid inflows to ETH ETFs since their launch in the United States in July. He specifically pointed to December’s brief surge in Ethereum’s price as evidence of the link between price action and ETF inflows. This surge was driven in part by Donald Trump’s election victory, which fueled a broader crypto market rally. During that period, ETH climbed 71% to reach $4,107 on Dec. 16, which started a 19-day positive streak in ETF inflows totaling around $2.44 billion, according to Farside data.

ETH’s price action over the past year (Source: CoinMarketCap)

However, that rally was short-lived. Since hitting its peak, ETH declined by more than 50% and now trades around $1,807. Balchunas stressed that for Ether ETFs to regain its momentum, the asset will need a ”multimonth run” alongside a compelling narrative, not just occasional spikes in price. 

He explained that the timing of ETF launches is also critical. In contrast to Ethereum ETFs, spot Bitcoin ETFs benefited from a strong price performance immediately after their debut in January of 2024. This helped attract investor interest and drive inflows as Bitcoin soared to new all-time highs within two months.

Meanwhile, many ETF issuers are still awaiting a decision from the US Securities and Exchange Commission (SEC) on whether Ethereum ETFs can offer staking. Bloomberg ETF analyst James Seyffart commented that approval could come early, but the final decision deadline is not until the end of October.

Nasdaq Seeks Approval for Dogecoin ETF

Nasdaq recently filed a request with US regulators to list a 21Shares ETF tied to Dogecoin (DOGE), according to newly released regulatory documents. This move is the latest in a series of ETF proposals targeting the popular meme coin, following similar applications by asset managers Bitwise and Grayscale. 

21Shares initially filed to launch its Dogecoin ETF on April 10 and also submitted filings for ETFs linked to other cryptocurrencies like Solana, XRP, and Polkadot. The listing cannot proceed until the SEC approves Nasdaq’s request, which could open the door to broader investor access to Dogecoin via an ETF structure.

Dogecoin is considered to be one of the most recognized meme coins in the market. Unlike many other meme tokens, DOGE functions as the native token of its own blockchain network. 

The Dogecoin network is built on a proof-of-work system and is optimized for peer-to-peer transactions, offering faster and cheaper transfers compared to Bitcoin. It processed over 48,000 transactions in the past 24 hours, based on data from Bitinfocharts.com.

Dogecoin stats (Bitinfocharts.com)

Efforts to expand Dogecoin’s utility are also still ongoing. In September of 2024, blockchain projects QED Protocol and Nexus announced plans to introduce a layer-2 scaling solution that would enable smart contract functionality on the Dogecoin network. This could potentially enhance its capabilities and broaden its appeal beyond just simple payments.

SEC Delays Dogecoin and XRP ETF Decisions

While ETF issuers are still waiting to hear about Ethereum staking, the SEC delayed decisions on whether to approve two proposed ETFs tied to Dogecoin and XRP. According to newly released filings, the regulator pushed its deadline to rule on the ETF applications until June. 

The delay was announced after March submissions from exchanges NYSE Arca and Cboe BZX Exchange, which wanted to list Bitwise’s Dogecoin ETF and Franklin Templeton’s XRP ETF, respectively. 

DOGE’s price action over the past year (Source: CoinMarketCap)

Dogecoin is currently the most actively traded meme coin, and holds a market cap of around $26 billion. XRP is the native token of the XRP Ledger, and has a market cap of approximately $130 billion, according to CoinMarketCap data.

These ETF filings are part of a growing wave in 2025, with the SEC reportedly reviewing close to 70 crypto-related ETFs as of late April. Bloomberg analyst Eric Balchunas shared that asset managers are pitching funds linked to a wide range of cryptocurrencies — from established tokens like XRP, Litecoin, and Solana to novelty meme coins like Penguins, Doge, and Melania-themed 2x leveraged tokens. The flood of ETF proposals comes during a time of increasing political pressure, with US President Donald Trump reportedly urging the SEC to adopt a more crypto-friendly approach.

Despite the surge in filings, analysts still warned that investor enthusiasm for altcoin ETFs may fall short compared to those based on Bitcoin and Ethereum. Balchunas compared the ETF approval process to a band getting its songs onto streaming platforms — a necessary step for exposure, but not a guarantee of popularity. 

While US exchanges are actively pursuing crypto ETF listings, some are also calling for stricter oversight. In a comment letter that was sent to the SEC, Nasdaq urged the agency to apply the same regulatory standards to digital assets that it does to traditional securities, and argued that some tokens may effectively function as ”stocks by any other name.”