Staking in #EthereumETF could radically change the market — experts predict a true revolution in how institutional investors will approach cryptocurrencies. It is about the ability to earn returns from staking directly through exchange-traded funds, which could make Ethereum-ETFs serious competitors to Bitcoin-ETFs.
American issuers #etf are still waiting for the Securities and Exchange Commission (SEC) to approve the provision of staking within their #Ethereum funds. Earlier this year, they submitted numerous applications, but so far without results.
However, there are signs that the situation may change. Nate Geraci, president of NovaDius Wealth Management and ETF analyst, reported on social media X that the SEC recently accepted Nasdaq's application to add staking to the iShares Ethereum ETF from BlackRock. In his opinion, staking Ethereum-ETF could become the next item on the regulator's 'to-do list'.
Additional returns — the game has changed
Markus Thielen, head of research at 10x Research, believes that staking for Ethereum-ETF will increase returns and could 'radically change the market.'
Even now, the arbitrage strategy between spot Ethereum-ETFs and Ethereum futures yields about 7% annual returns. If staking is added with its additional 3% return, the total return potential will reach 10% without the use of leverage.
"With 2-3 times leverage, institutional investors could expect 20-30% annual returns from this arbitrage strategy," explains Thielen. According to him, this will be a 'monumental structural shift in how institutional capital flows into Ethereum.'
Why returns are so important for major players
Returns are a key factor for institutional investors before they enter into any investments.
The reason is simple: institutions like pension funds prioritize stable and predictable income over uncertain capital gains. Returns are also seen as a way to reduce volatility.
Ethereum-ETF will now provide diversification from Bitcoin as 'digital gold' to ETH as 'infrastructure for stablecoins', as well as, importantly, returns that are not applicable to Bitcoin.
A return of 3-5% will make Ethereum-ETF an attractive addition to the portfolio, considering the growth potential of Ethereum — this is quite unique from a portfolio approach.
