Ethereum may be one of the most mispriced assets in crypto, according to David Duong, Coinbase’s global head of institutional research. His argument centers on three points the market has not fully absorbed: clearer regulation, institutional demand, and a possible shift in Ethereum’s supply outlook.
The source says ETH is trading around $2,000, which is 59% below its August 2025 all-time high. Speaking on the Milk Road Show this week, Duong said many investors have broadly written off altcoins during the bear market, but he does not think Ethereum fits that same reading.
Regulatory clarity stands out for Ethereum
On March 17, the SEC and CFTC jointly classified 16 crypto assets as digital commodities, including ETH. The article argues that this matters more for Ethereum than for many other tokens because staking sits at the center of its ecosystem, and the new classification explicitly places staking outside securities law.
Duong said that gives ETH a cleaner regulatory pass. In practical terms, that could matter for institutions that stayed on the sidelines because of legal uncertainty and were waiting for a clearer framework before adding exposure.
BlackRock’s staked ETF may tighten circulating supply
Duong also pointed to BlackRock’s iShares Staked Ethereum Trust ETF, launched earlier this month. The fund brought in $254 million in its first week, described in the source as the fastest-growing crypto ETF launch of 2026. Under normal conditions, the fund plans to stake 70% to 95% of its ETH holdings.
That detail matters because rising institutional demand paired with more ETH being staked could reduce the amount of ether available in circulation. Duong called this a major development that is not yet reflected in ETH pricing.
EthCC agenda item sparks attention on issuance
Another point Duong highlighted is EthCC, which the source says opens in Cannes on Monday, March 30. He singled out a scheduled talk titled “Issuance: The Cost of Inaction” and said he expects a major announcement related to Ethereum’s future supply.
The source does not describe what that announcement would contain, and it gives no specific policy change. Still, Duong’s comments place Ethereum issuance and monetary policy at the center of attention heading into the conference.
Institutional survey still shows appetite for crypto
Coinbase Institutional’s 2026 survey of about 350 respondents found that 73% plan to increase digital asset allocations this year, while 74% expect crypto prices to rise over the next 12 months. The survey was conducted during the January drawdown, according to the article.
Duong summed up the setup by saying that anyone who wanted to sell has likely already sold. With ETH near $2,000, cleaner regulatory treatment, a staked ETF that could absorb supply, and a possible announcement on Monday, he argues the market still has not fully caught up.