If BlackRock's ETH Staking ETF is subsequently approved (with a high probability in Q1/Q2 next year), then this is not just a positive event for the price of Ethereum; it fundamentally reshapes the asset attributes of ETH, with far-reaching impacts.
Previous Ethereum ETFs:
When users bought them, it was equivalent to buying a bunch of Ethereum and putting it in storage. If the price goes up, they profit; if it goes down, they lose, with no other income.
Staking ETF:
BlackRock takes the ETH in the fund for staking (which means locking it in the Ethereum network to help with bookkeeping), and for doing this work, there are rewards, approximately 3-5% annually. After deducting a small management fee from these rewards, dividends are paid out to all ETF buyers every three months. At this point, someone buying this ETF enjoys the benefits of Ethereum's price increase and also receives a relatively stable interest.
For ordinary people: Previously, staking by oneself was cumbersome, requiring wallets, running nodes, and a fear of penalties. Now, simply buying this ETF is as easy as buying stocks; interest is credited automatically with no need for management. For large institutions: Many pension funds and university endowments were previously hesitant to touch cryptocurrencies due to the complexity and fear of issues. Now, BlackRock has taken care of all the hassles; they just need to click a mouse to buy, and it can be categorized as a “fixed income asset” on reports, which is compliant and looks good. As a result, these substantial long-term funds might consider allocating a portion.
The result is: The circulating ETH in the market will decrease, while the number of buyers continues to increase, making it naturally easier for the price to rise. Not only that, but narratives around ETH as a global settlement layer/productive asset will be further strengthened. Previously, Wall Street viewed ETH as a speculative toy; now BlackRock tells them: “This thing can generate stable cash flow, similar to bonds.”
Once this narrative emerges, it becomes much more natural to promote Ethereum's role in stablecoins/on-chain lending/trading/transforming US Treasuries and US stocks into on-chain assets/other RWAs.
Of course, this trend also raises some concerns, as giants like BlackRock and Coinbase may stake too much, potentially leading to a concentration of node control $ETH in a few hands, which isn't sufficiently decentralized. Additionally, while ETH interest is stable, the price of ETH itself experiences significant fluctuations, so it cannot yet be considered a true “bank fixed deposit.”
