Coinbase, one of the largest centralized exchanges, now controls up to 8% of staked Ethereum (ETH), which could have significant implications for staking ETFs.
Coinbase's Role in Staking Ethereum
Coinbase is one of the largest stakers of Ethereum, surpassing Binance, which carries around 2.2 million in staked ETH. This position allows Coinbase to offer users safer staking options with passive income potential. Currently, Coinbase offers up to 2.14% APY for using its platform for staking.
Potential of Staking ETFs for Ethereum
There are expectations that the introduction of staking ETFs may increase demand for ETH among investors. Staking ETFs promise to provide additional income for new buyers, creating an attractive alternative. Additionally, the first ETF is expected to gain approval from the SEC in the coming weeks.
Comparison with Other Markets and Products
While the US market has yet to offer staking ETFs, European investors already have access to such products from companies like 21 Shares. These ETFs simplify the staking process and eliminate the 32 ETH minimum threshold for retail investors.
By holding a significant share of staked ETH, Coinbase could play a key role in the development of staking ETFs, impacting the Ethereum market and attracting new investors.
