ETH Spot ETF Institutional Interest May Decline if Staking is Excluded

IconCryptoNewsTerminal Staff13 Jun, 2024

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ETH Spot ETF Institutional Interest May Decline if Staking is Excluded

Analysis indicates that institutional interest in a potential ether (ETH) spot exchange-traded fund (ETF) could wane if staking is excluded from the product. Crypto derivatives trader Gordon Grant shared his insights with The Block, stating that the absence of a staking option in an ETH spot ETF might lead institutional investors to seek alternative on-chain solutions. This could result in reduced demand for the ETF. Issuers of ETH spot ETFs recently submitted amended S-1 registration statements to the U.S. Securities and Exchange Commission (SEC), notably removing staking from their offerings. Earlier estimates from JPMorgan anticipated that an ETH spot ETF could attract substantial net inflows, potentially reaching $3 billion with the inclusion of staking.

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