Spot Ether ETF staking could ‘dramatically reshape the market’

Staking approval for US-listed Ether spot exchange-traded funds will bring huge inflows of institutional money into Ethereum, possibly giving Bitcoin ETFs a run for their money, analysts say.

Speaking to Cointelegraph, 10x Research’s head of research, Markus Thielen, said staking for Ethereum ETFs would increase the yield and could “dramatically reshape the market.”

US ETF issuers are still waiting for the US Securities and Exchange Commission to allow Ether ETFs to offer staking after filing numerous requests for permission earlier this year.

NovaDius Wealth Management president and ETF analyst Nate Geraci said in an X post on Wednesday that, given the SEC has recently acknowledged the Nasdaq’s application to add staking to BlackRock’s iShares Ethereum ETF, Ethereum ETF staking could be next on the agencies’ “hit list.”

Spot Ether ETFs’ interest could surge after staking approval

Thielen predicted that the increased yield would likely result in demand for spot Ether ETFs surging alongside increased activity in Ethereum options markets.

The basis trade between spot Ether ETFs and Ethereum futures, already offering around a 7% annualized return, would suddenly become far more attractive, with staking adding an additional 3% yield, according to Thielen.

“That brings the total return potential to 10% unleveraged. With 2–3x leverage, institutional investors could target 20–30% annualized returns from this arbitrage strategy,” he said.

“This would mark a monumental structural shift in how institutional capital flows into Ethereum, unlocking a new era of yield-driven participation.”

Extra yield will make Ether ETFs a compelling portfolio addition

Ryan McMillin, chief investment officer of Australian crypto investment manager Merkle Tree Capital, told Cointelegraph that yield is a massive consideration for institutional investors before they pile into an investment.

The main reason is that institutions, like pension funds, prioritize steady and predictable income over uncertain capital gains; the yield is also perceived to reduce volatility, he said.

“Ether ETFs will now provide both diversification away from Bitcoin, as digital gold, to ETH as ‘stablecoin infrastructure’ but equally important, a yield which is not applicable for Bitcoin,” he said.

“A 3-5% yield will make ETH ETFs a compelling portfolio addition given its growth potential, which is quite unique from a portfolio perspective.”

Approval could also boost liquidity and onchain participation

Hank Huang, CEO of Kronos Research, told Cointelegraph that staking approval in spot Ether ETFs changes the game for institutions waiting for a compliant way to earn yield onchain without touching private keys.

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“Ether ETFs offering yield plus asset growth flips the switch on demand, boosting liquidity and sparking greater appetite for onchain participation,” he said.

“By combining income and upside, these ETFs will pull in serious capital and drive higher valuations across the ecosystem.”

Huang predicts an ETF that blends staking rewards with smooth, flexible exits will raise the bar, setting a “new gold standard” for bringing crypto into mainstream finance.

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