Analysis: Investors will continue to stake ETH outside of ETFs and earn returns, rather than paying fees to hold Ethereum in ETFs
On July 23, investors were more cautious and divided ahead of the launch of the Ethereum ETF in the United States, in stark contrast to the widespread enthusiasm before the launch of the Bitcoin ETF.
A major concern for some investors is that the SEC has excluded the “staking” mechanism, a key feature on the Ethereum blockchain. Staking allows Ethereum users to earn rewards by locking up their ether to help secure the network. The rewards or returns come in the form of newly issued Ethereum and a portion of the network’s transaction fees. As currently structured, the SEC will only allow ETFs to hold regular, uncollateralized Ethereum.
