Sygnum Researchers Say Ethereum Will Be Biggest Beneficiary of Regulatory Clarity

The prediction comes as Ethereum has underperformed despite the approval of spot ETH ETFs, and community members have called for restructuring the Ethereum Foundation.

Researchers from Sygnum Bank, a global digital asset banking group, have predicted that Ethereum will be the biggest beneficiary of crypto regulatory clarity under the Trump administration, especially if sentiment and capital are directed into productive projects rather than memecoins.

On Jan. 30, Sygnum published a quarterly investment report on the crypto industry, highlighting sectors like crypto policy, Layer 1 (L1) blockchain growth, restaking, and the Ethereum crisis.

According to the report, Ethereum has performed poorly despite the liquidity boost from Ethereum exchange-traded funds (ETFs), driving investors to favor other altcoins like Solana. The recent Trump family memecoin launches on Solana have further swayed sentiment and capital away from Ethereum.

Furthermore, there has been dissatisfaction within the Ethereum ecosystem, with community members calling for a restructuring of the Ethereum Foundation.

Despite this, Sygnum researchers note that institutional investors have been accumulating ETH recently, indicating that Ethereum still commands a large market share regardless of its current positioning in the industry.

“Allocations to the Ethereum ETFs by institutional investors are more of an expression of (correctly) seeing Ethereum as a proxy or de facto index for the activity taking place across the crypto industry where Ethereum maintains an overwhelming market share and less an expression of a view on Ethereum’s outlook or competitive positioning,” the report said.