Close Menu
Altcoin ObserverAltcoin Observer
  • Regulation
  • Bitcoin
  • Altcoins
  • Market
  • Analysis
  • DeFi
  • Security
  • Ethereum
Categories
  • Altcoins (1,377)
  • Analysis (1,563)
  • Bitcoin (2,149)
  • Blockchain (1,258)
  • DeFi (1,477)
  • Ethereum (1,478)
  • Event (56)
  • Exclusive Deep Dive (1)
  • Landscape Ads (2)
  • Market (1,520)
  • Press Releases (1)
  • Reddit (801)
  • Regulation (1,420)
  • Security (2,037)
  • Thought Leadership (2)
  • Videos (41)
Hand picked
  • The analyst says that Ethereum is ready to climb with higher stockings against Bitcoin, but there is a warning
  • This Bitcoin drugstore thought experiment quickly got out of hand
  • Ethereum Price BALLES: Technical analysis during political conflicts?
  • TRON Microstrategy beats Alibaba, tence in front of the IPO
  • Jpmorgan Chase to pilot the JPMD deposit token on the Coinbase base
We are social
  • Facebook
  • Twitter
  • Instagram
  • YouTube
Facebook X (Twitter) Instagram
  • About us
  • Disclaimer
  • Terms of service
  • Privacy policy
  • Contact us
Facebook X (Twitter) Instagram YouTube LinkedIn
Altcoin ObserverAltcoin Observer
  • Regulation
  • Bitcoin
  • Altcoins
  • Market
  • Analysis
  • DeFi
  • Security
  • Ethereum
Events
Altcoin ObserverAltcoin Observer
Home»Ethereum»Staking Could Reduce Fees and Boost Interest in Ethereum ETFs, Analyst Says
Ethereum

Staking Could Reduce Fees and Boost Interest in Ethereum ETFs, Analyst Says

November 7, 2024No Comments3 Mins Read
Share Facebook Twitter Pinterest LinkedIn Tumblr Reddit Telegram Email
Ethereum Staking.jpg
Share
Facebook Twitter LinkedIn Pinterest Email


Receive, manage and grow your crypto investments with BrightyReceive, manage and grow your crypto investments with Brighty

Staking could significantly increase the flow of investments into U.S.-traded Ethereum exchange-traded funds (ETFs), according to Tom Wan, a former crypto analyst at 21.co.

On November 7, Wan highlighted that staking could help funds reduce management fees, increase the overall amount of Ethereum staked, and provide more substantial incentives to investors.

Wan noted that the lack of participation in Ethereum ETFs currently poses a barrier to their success. Staking could be a game changer, allowing these ETFs to compete more effectively with Bitcoin ETFs.

No US-based Ethereum ETF currently includes staking due to regulatory concerns. The United States Securities and Exchange Commission (SEC) has raised the question of whether staking services could be considered unregistered securities offerings.

However, several analysts have indicated that ETFs would benefit significantly from staking, a process that allows investors to lock up their Ethereum to validate transactions and earn rewards.

As of November 6, Ethereum ETFs have seen cumulative net outflows of more than $500 million, according to data from SoSoValue.

How Staking Would Transform Ethereum ETFs

Wan explained that staking ETH in ETFs could reduce management fees from rates as high as 2.5%, seen in funds like Grayscale ETHE, to almost zero. Staking yields are typically around 3.2%, meaning ETF issuers could stake around 25% of their assets to cover operating costs without passing fees on to investors. This fee reduction would make Ether ETFs more attractive and affordable.

In Europe, companies such as CoinShares and Bitwise have already started offering staking rewards alongside reduced fees, demonstrating the viability of this approach. Wan pointed out that while other issuers like VanEck and 21Shares still charge management fees, their staking returns are often enough to cover expenses.

Wan estimated that staking within ETFs could add between 550,000 and 1.3 million ETH to the total staked supply, pushing it to new highs from the current rate of around 28.9%. . This increase in ETH staked could attract more investors and contribute to the stability of the Ethereum network.

Major ETF issuers like 21Shares, Bitwise, and VanEck are good at staking, giving them an advantage over companies with lower assets under management. Wan noted that smaller companies can offer higher staking returns to attract investors.

He declared:

“This approach could benefit issuers with lower assets under management, allowing them to be more aggressive with higher staking yields to attract investors.”

Staking via ETFs could also reshape Ethereum’s staking landscape by funneling more funds into centralized staking pools and exchanges, thereby inadvertently improving liquidity. Wan suggested ETF issuers explore liquid staking solutions, such as Lido’s stETH liquid staking token, to allow investors to withdraw funds more efficiently.

In conclusion, Wan said staking could help Ethereum ETFs realize their full potential and compete more effectively with Bitcoin ETFs. With management fees close to 0% and a yield of around 1%, Ether ETFs could become an attractive option for investors, offering a solid alternative in the crypto investment space.

Mentioned in this article



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Previous ArticleSWELL is available for exchange!
Next Article After years of fluctuations, DeFi TVL recovers in 2024

Related Posts

Ethereum

The analyst says that Ethereum is ready to climb with higher stockings against Bitcoin, but there is a warning

June 17, 2025
Ethereum

Bitcoin abandons the rally after Trump denies the role of ceasefire Iran-Israeli, calls Tehran to evacuate

June 17, 2025
Ethereum

Trump Media Dost for Bitcoin and Etf Etf Etf

June 17, 2025
Add A Comment
Leave A Reply Cancel Reply

Single Page Post
Share
  • Facebook
  • Twitter
  • Instagram
  • YouTube
Featured Content
Event

Philippine Blockchain Week 2025 Welcomes Global Web3 Trailblazers to Manila

June 9, 2025

Manila, Philippines – June 9, 2025 — As Philippine Blockchain Week (PBW) 2025 returns for…

Event

ETHMilan 2025 Returns With a Stellar Line-Up at One of Milan’s Most Iconic Venues

June 5, 2025

Milan, Italy – Mark your calendars! ETHMilan, Italy’s largest international Ethereum and Web3 conference, is…

1 2 3 … 49 Next
  • Facebook
  • Twitter
  • Instagram
  • YouTube

TRON Microstrategy beats Alibaba, tence in front of the IPO

June 17, 2025

Ripple and dry you want calls on break-is a revolutionary decision coming soon?

June 17, 2025

Daily users of the large XRP book jump from 7x to 295k-is a price change?

June 17, 2025
Facebook X (Twitter) Instagram LinkedIn
  • About us
  • Disclaimer
  • Terms of service
  • Privacy policy
  • Contact us
© 2025 Altcoin Observer. all rights reserved by Tech Team.

Type above and press Enter to search. Press Esc to cancel.

bitcoin
Bitcoin (BTC) $ 104,724.06
ethereum
Ethereum (ETH) $ 2,519.36
tether
Tether (USDT) $ 1.00
xrp
XRP (XRP) $ 2.16
bnb
BNB (BNB) $ 647.74
solana
Solana (SOL) $ 147.75
usd-coin
USDC (USDC) $ 1.00
tron
TRON (TRX) $ 0.272614
dogecoin
Dogecoin (DOGE) $ 0.169883
staked-ether
Lido Staked Ether (STETH) $ 2,518.50