Ethereum ETFs & Staking

March 07, 2024

We also look at the challenges of implementing Staking Ethereum ETFs, in particular the interrelationship between ETF withdrawals and Ethereum staking exits queue system. Some argue that since Ethereum staking generates a yield or because stakers propose blocks, this makes Ethereum a “security” and therefore this provides a rationale for the SEC to reject Ethereum ETFs. Additionally the terms and conditions of the Ethereum staking ETFs could be altered, allowing for delays in the redemption process under certain circumstances. Therefore, in our view, it might be several years until meaningful staking Ethereum ETFs exist in the United States. We will be first to report on the extent to which the Ethereum ETFs cannibalise the Bitcoin ETFs, the Ethereum in staking pools or the Ethereum in locked in dexes.

The source of this news is from BitMEX