Staking could make ethereum ETFs more competitive against bitcoin
According to Tom Wang, former crypto analyst at 21. co, staking could play a key role in making #Ethereum ETFs more attractive.
According to Tom Wang, former crypto analyst at 21. co, the inclusion of staking in Ethereum ETFs could lower management fees, increase the total amount of Ethereum staked and provide investors with more incentives, which would make these funds #Bitcoin ETFs could increase their competitiveness against Bitcoin ETFs. Currently, staking is not included in U. S. Ethereum ETFs due to concerns from regulators, particularly the U. S. Securities and Exchange Commission (SEC), that staking services could be considered an unregistered offering of securities.
However, analysts believe that allowing staking will greatly benefit these ETFs. Staking can lower management fees (often as low as 2.5%), allowing ETFs to allocate a portion of their assets to operating expenses without burdening investors. This can make Ethereum ETFs more cost-effective and attractive to investors.
In regions such as Europe, companies such as CoinShares and Bitwise have already integrated staking fees with reduced commissions, proving the success of this model; Wang says staking fees in ETFs can bring in an additional 550000-1.3 million ETH, which can be used to fund the ETF's trading activities, he believes, which will increase the stability of the Ethereum network and attract more capital.
Mr. Wang also emphasized that large #ETF issuers such as 21Shares, Bitwise and VanEck have experience with the rates and have an advantage. Smaller companies may offer higher rates to remain competitive.
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