**News Flash: ETH Staking Not Coming to Spot ETFs Soon**
Staking won't be part of spot Ethereum (ETH) exchange-traded funds (ETFs) in the U.S. anytime soon, thanks to a cautious stance by regulators. Retail investors looking to maximize returns might want to consider staking on regulated exchanges like Coinbase or Gemini instead.
Spot ETH ETFs, launched in July, offer high liquidity and low fees but lack staking rewards. Staking ETH, which involves locking it up as collateral, currently yields around 3.2% APR. However, regulatory concerns about liquidity and active management keep staking out of ETFs for now.
For those seeking alternatives, decentralized finance (DeFi) protocols offer liquid staking derivatives but come with higher risks and less regulation. Until U.S. regulators soften their stance, staking on regulated exchanges remains a safer bet.