CoinShares analyst: Investors will continue to stake ETH outside of ETFs and earn returns rather than paying fees and holding Ethereum in ETFs

Investors are more cautious and divided ahead of the launch of an Ethereum ETF in the United States, in stark contrast to the widespread enthusiasm before the launch of a 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 enables Ethereum users to earn rewards by locking up their ether to help protect the network. Rewards or returns come in the form of newly issued ether and a portion of network transaction fees. Under the current structure, the SEC will only allow ETFs to hold regular, uncollateralized ether. "Institutional investors who are concerned about Ethereum know that staking can earn returns," said McClurg, an analyst at CoinShares. "It's like a bond manager saying, I'm going to buy a bond, but I don't want to earn interest, which goes against the original intention of buying a bond." McClurg believes that investors will continue to stake Ethereum outside of the ETF and earn returns, rather than paying fees and holding Ethereum in the ETF. (Jinshi)