Tom Wan, a former crypto analyst with 21.co, believes that staking could boost investments into US-traded Ethereum exchange-traded funds (ETFs). Staking offers benefits such as reduced management fees, higher staked Ethereum amounts, and greater incentives for investors. However, no US-based Ethereum ETFs currently include staking due to regulatory concerns.
Staking involves locking up Ethereum to validate transactions and earn rewards, and Wan estimates it could add between 550,000 and 1.3 million ETH to the total staked supply. This could attract more investors and contribute to the network’s stability. Major ETF issuers like 21Shares, Bitwise, and VanEck are experienced in staking, giving them an advantage over smaller firms.
Staking via ETFs could also improve liquidity by channeling more funds into staking pools and centralized exchanges.