Institutional Investor Interest in Ethereum Will Only Be Possible If This Realizes!
Institutional interest in spot Ethereum ETFs may not reach the level expected until the staking option opens.
Cryptocurrency derivatives trader Gordon Grant argued in a statement to The Block that until staking is enabled for spot Ethereum ETFs, institutional traders will instead turn to different investments:
For institutional players in particular, until staked Ethereum exchange-traded products emerge, they are likely to have the sophistication to go for on-chain solutions instead.
In a recent statement, banking giant JP Morgan said that the lack of staking for spot Ethereum ETFs makes these products less attractive as an investment product.
SEC does not accept staking option
The US Securities and Exchange Commission (SEC) had requested an update to the S-1 filings of spot Ethereum ETF issuers and requested the removal of the staking option.
Accordingly, all of the companies that wanted to issue Ethereum ETFs had removed the staking option. In contrast, some of the other Ethereum-issuing countries, such as Hong Kong, have announced that staking will be allowed.