Staking paradox: Crypto expert targeted Ethereum

Cryptocurrency analyst Gordon Grant said that until staking is available, institutional players may wait for staking to be approved as interest in funds traded on the spot ether exchange decreases.

Grant, spot ether He noted that institutional investors will use onchain solutions instead until the staking service for their ETFs is launched. Grant said holding Ethereum, unlike Bitcoin, is a spot Ethereum option for institutional investors. ETFHe said that it could offer a more significant performance advantage compared to .

Staking service could impact demand for Ethereum

Staked ETHs help ensure Ethereum security. However, current practices for spot ether ETFs are subject to regulatory uncertainties and SECDue to its stance on staking activities within such funds, it eliminates staking components.

Grant is not the first person to make this claim. In a recent note, JP Morgan said the lack of staking for approved spot ether ETFs makes these products less attractive as an investment piece. Analysts have argued that since ETFs have removed staking from their portfolios, this has made them less popular compared to platforms that offer staking returns.

Current practices for spot ether ETFs exclude staking components due to regulatory uncertainties and the SEC’s stance on staking activities within such funds.

Grant is not the first person to make this claim. In a recent note, JP Morgan said that a lack of staking for approved spot ether ETFs has reduced demand for these works. Analysts have argued that since ETFs have removed staking from their documentation, this has made them “less attractive compared to platforms that offer staking returns.”

JPMorgan expects spot Ethereum ETFs to attract up to $3 billion in net inflows through the rest of this year. The company stated that the number could rise up to $6 billion if staking is allowed.

Hong Kong and spot Ether ETF relationship

Meanwhile, Animoca Brands Board Leader Yat Siu told The Block that Hong Kong asset managers are working to include staking in spot Ether ETFs for the staking reward feature to be approved this year. Siu said that Hong Kong is currently in talks for staking and that the possibility of staking being approved in Asia before the US is almost a foregone conclusion.

In addition, Siu said, “There is an optimistic side of me that wants this to happen within the year, no matter how fast. “If there is not much movement in staking during the year, then I can say that the election result will be another determinant in terms of how quickly this can happen in the USA,” he said.