BlackRock highlights that the inability to stake ETH within ETFs is a major reason for their underperformance, making them less appealing to investors.
The Staking Issue in Ethereum ETFs
BlackRock, one of the largest asset managers globally, has pointed out that the inability to stake ETH in structural products is a primary reason for their low performance. In traditional Ethereum investing, staking allows holders to earn passive income by participating in network operations, but current ETF structures lack this feature.
SEC's Support Could Boost ETH's Price
The SEC's evolving attitude towards cryptocurrency is notable, particularly following Bitcoin ETF approvals. This sets a precedent and increases the likelihood of Ethereum ETFs getting approval, even without staking. BlackRock's public optimism lends weight to market expectations, potentially leading to significant buying pressure and Ethereum price increases when approved by the SEC.
Conclusion: A Bullish Outlook for Ethereum
While the lack of staking options may hinder the appeal of Ethereum ETFs, strong signals from both BlackRock and the SEC suggest approval is likely. This creates a bullish outlook for Ethereum’s price trajectory as institutional interest and regulatory support align.
Despite the staking issue, positive signals from BlackRock and the SEC suggest a likely approval, creating favorable prospects for Ethereum's price growth.
