Ethereum needs marketing! Institutions reveal a key reason why Ethereum ETF prospects are more attractive

Since its launch, the performance of the Ethereum spot ETF has been less than ideal, with the coin price also performing below expectations. However, does this mean that Ethereum has reached its limit? Executives from the institutional-grade staking company Attestant revealed in a report that they believe Ethereum has more potential that has yet to be realized, making the Ethereum ETF's prospects more attractive. They also admitted that Ethereum may need more marketing and narratives that appeal to Wall Street investors.

Unified Value Proposition Needed: What Is Ethereum Really?

Executives at institutional staking firm Attestant have expressed their optimism for Ethereum despite complaints about its weak price performance and lack of interest in the U.S. spot ETF market. They believe the market has yet to reflect Ethereum's true value. They suggest that by marketing Ethereum more effectively to attract Wall Street investors to purchase Ethereum spot ETFs, its value proposition can be better communicated.

Tim Lowe, a strategy consultant at the firm, stated, "Bitcoin sold itself to Wall Street with a simple value proposition as 'digital gold,' establishing its dominance in the digital asset space." However, Lowe believes that by combining sophisticated marketing with a more unified value proposition, Ethereum can easily gain market share, appealing to institutional investors seeking asset diversification.

Lowe further emphasized that a key to attracting these institutional investors focused on asset diversification is a more unified value proposition. Diversification can only be achieved when non-blockchain users can understand it.

"Is this an app store? Is it an internet based on blockchain, or digital oil?"

Lowe contrasted this analogy with Bitcoin's value proposition as digital gold.

He added that currently, only those genuinely interested in blockchain would want to know about Ethereum, while many who buy Bitcoin ETFs see it purely as a high-performing digital asset. Since its launch, a total of 9 Ethereum ETFs have seen a net outflow of $564 million, breaking the record of eight consecutive trading days without net inflows on September 10.

Staking as a Major Selling Point for Ethereum: 4% Annualized

In the long run, staking will be another major selling point for Ethereum. This will enable Ethereum ETF investors to earn approximately 4% in annual returns by holding ETH through the fund. Several asset management companies including BlackRock, Fidelity, and Franklin Templeton have attempted to gain regulatory approval to include staked ETH in their ETFs but were rejected by the SEC.

Attestant stated that excluding staking was a necessary sacrifice for the funds at the time. However, they believe it will be the ideal solution for its future introduction. They mentioned that staking ETH brings regulatory risks under securities laws, and liquidity is also a significant challenge. "For these ETFs, you need to be able to enter and exit quickly. If the mainnet is congested, it could take a long time," they added.

Ethereum's Gas Fee Burn Model Could Make It a Scarce Asset

However, Lowe noted that even if staking is not included as an option in spot ETFs, Ethereum's mechanism will still be a major point of interest. Due to Bitcoin's design with a limit of 21 million coins, it is considered a scarce asset. But Lowe believes Ethereum's gas fee burning design would actually be more attractive to investors who appreciate scarcity.

"When you pay a gas fee with ETH, you are essentially taking it out of circulation, a feature Bitcoin does not have," he said.

As the halving of Bitcoin block rewards every four years poses serious sustainability issues in the long term, Ethereum's development model can avoid this problem. "Purely in terms of numbers, the amount of Ethereum issued annually is less than Bitcoin," he added. In the long run, Ethereum's prospects are more appealing to value-driven investors.

Fidelity Digital Assets Head Discusses Ethereum in Staking ETFs, Confident It's "Only a Matter of Time"