Grayscale Investments’ head of research Zach Pandl expects Ether to benefit more than Bitcoin as Donald Trump takes the office in January.
Trump has already promised regulatory clarity and more accommodative policies for digital assets.
His pro-crypto stance may prove to be a meaningful tailwind for Ethereum as it has more extensive use cases than Bitcoin that “require clear rules of the road from regulators to fulfill its vision,” as per Pandl.
Ether has been in a sharp uptrend in recent weeks. Since election day, the world’s second-largest cryptocurrency by market cap has rallied close to 50%.
Trump 2.0 is not baked into Ether’s price yet
Ethereum has been suffering what Mark Connors of Onramp describes as the “middle child syndrome”. Investors continued to favour its younger sibling Solana and its older sibling BTC until fairly recently.
But their preference could shuffle under the new administration as the potential impact of Trump’s pro-crypto policies are “not priced in yet … we’re seeing price discovery take place as we speak to determine the next price level.”
His accommodative stance on cryptocurrencies could help ETH “lead in tokenization, stablecoins, and DeFi and really solidify itself as the global settlement layer for finance,” as per Zach Pandl.
Versus its year-to-date low, Ethereum is up 60% at writing.
Ether funds could win under Trump presidency
Pandl is bullish as regulatory clarity will enable investors to stake their Ethereum for passive income as well.
It may also drive institutional money to the Ether exchange-traded funds that have been rather lethargic since their launch in July.
But capital has already started to flow into these ETFs now that Donald Trump is scheduled to be sworn in as the 47th President of the United States.
Despite an ongoing rally in Ether since the election day, it’s still a laggard versus Bitcoin that has well over doubled this year. The CoinDesk 20 index is also up 94% (way more than ETH) year-to-date.
But all it means is Ether has more room to run higher in 2025, Pandl concluded in his recent note.
Could Ethereum surpass $1 trillion market cap?
Another expert who’s uber bullish on what the future holds for Ethereum is Bitwise Asset Management’s chief investment officer Matt Hougan.
The new Congress, he’s convinced, will pass stablecoin legislation that will help Ether surpass $1 trillion in market cap. “Ethereum is the dominant chain for issuing stablecoins, it’s a dominant market for DeFi, it’s been the favoured public blockchain for large Wall Street firms to build on it,” Hougan argued in a recent report.
He quoted Onyx – the Ethereum-based blockchain that JPMorgan uses for real-time cross-border transactions as an example. Note that famed investor Jim Cramer also has Ether in his personal portfolio.
The post Ether could benefit more than Bitcoin under the Trump administration appeared first on Invezz