21Shares Co-Founder and CEO Hany Rashwan recently made an appearance on “Bloomberg Crypto” to discuss Ethereum’s price action as nine US-listed spot Ethereum ETFs began trading. Rashwan highlighted the downward trend in Ethereum’s price for three consecutive days, attributing it to the timing of the ETF launches, global macroeconomic events, and the summer period. Despite these short-term fluctuations, Rashwan remains optimistic about Ethereum’s performance over the next 6 to 12 months.
When discussing the target audience for spot Ethereum ETFs, Rashwan emphasized their broad appeal to both retail and institutional investors. Retail investors often prefer ETFs due to the complexities involved in setting up wallets, while institutional investors appreciate the regulated framework and custody solutions provided by these financial products. While insurance and pension funds have been hesitant to invest in crypto, Rashwan believes this sentiment will change in the future.
Rashwan also highlighted Ethereum’s unique use cases, particularly in the realm of decentralized finance (DeFi). He described Ethereum as a platform for various financial applications, including smart contracts and stablecoins. The impact of stablecoins on the market was evident, with Visa processing $10 trillion and stablecoins settling $9.3 trillion in transactions last year.
One of the key topics of discussion was the potential integration of staking rewards into Ethereum ETFs. While staking rewards are not currently included in these products, Rashwan expressed confidence that this would change in the future. He mentioned that the process involved educating regulators and ensuring their comfort with the concept, drawing parallels to the approval process for spot Ethereum ETFs.
The conversation also touched on the political landscape and its potential impact on crypto regulation, specifically regarding the upcoming U.S. presidential election. Rashwan mentioned that while the daily operations of regulatory bodies would remain largely unchanged, crypto becoming a mainstream topic in political discourse was crucial. He expressed optimism about bipartisan support for crypto-related legislation, regardless of the election results, emphasizing that crypto was here to stay in America.
At the time of writing, ETH is trading at around $3,479, up 0.6% on the day. Despite short-term price fluctuations, Rashwan’s outlook for Ethereum remains positive, particularly in light of the potential integration of staking rewards into Ethereum ETFs and the growing interest in crypto investments among both retail and institutional investors.
