Bitrabo Editorial
US Securities and Exchange Commission (SEC) Commissioner Hester Peirce highlighted the potential inclusion of staking features in Ethereum ETFs after their expected launch on July 23.
Initially, ETF providers like VanEck and Fidelity aimed to include staking but likely removed this feature for SEC approval in May.
Staking Reconsideration in Ethereum ETFs
Commissioner Peirce mentioned the possibility of reintroducing staking in Ethereum ETFs, which was omitted from approved Bitcoin ETFs, emphasizing a need for reconsideration of product features after trading begins.
She expressed concerns over the complex approval processes for cryptocurrency ETFs and emphasized the importance of smooth product launches.
Advantages of Staking and ETFs
Staking enables token holders to earn rewards by securing tokens in a blockchain network. In Ethereum, validators stake 32 ETH to validate transactions and add blocks to the blockchain, promoting network security.
Including staking in ETFs could attract various investors familiar with this concept, potentially increasing demand in the new Ethereum ETF market.
Analysts predict a strong demand for Ethereum ETFs upon their launch, with expectations varying among different projections.
Despite varying predictions, the general sentiment suggests a positive response to the introduction of Ethereum ETFs with and without staking features.
At the time of writing, Ethereum is trading at $3,395, showing fluctuations in the short term but an overall upward trend in the past week.
Image Source: DALL-E, TradingView.com