Ethereum ETFs Seek Permission for ETH Staking – Course-Relevant
In the USA, several Ethereum ETFs are currently being tested, and some of them want to integrate staking. According to experts, this could positively affect Ethereum’s price.
Traditional financial products such as exchange-traded funds (ETFs) are among the most important factors in the public perception and valuation of legendary Bitcoin. Now similar financial products are being prepared for Ethereum, which has always been in Bitcoin’s shadow. In the USA, a handful of companies have so far applied for permission to offer ETFs for Ethereum – but some time has passed without any significant changes. Among the potential providers are heavyweights like BlackRock and Invesco, and the responsible US Securities and Exchange Commission (SEC) should soon decide whether to approve these ETFs.
In connection with the preparations, some applicants have also filed requests to use the incoming ether for staking – meaning that the ether will be actively used for the Ethereum network. Staking rewards could be achieved by allocating the aforementioned funds for network confirmations, and financial services providers are already offering individuals easy access to staking. BlackRock and Invesco, which have already integrated Bitcoin ETFs with futures contracts in their offerings, also want to take advantage of this opportunity.
Insiders, who do not want to be named but are familiar with SEC processes, explain that the number of applications for Ethereum ETFs with staking capabilities has increased rapidly in recent weeks. But there could still be hurdles to overcome before the venture becomes a reality. Also, it remains to be seen whether and to what extent the content of the applications will be revised to adapt to the legal framework.
What is certain is that the interest in Ethereum among investors is growing. The number two of the cryptocurrencies after Bitcoin, when it comes to market capitalization, has a permeable plan that continually focuses on developing its technical potential with the formula of proof-of-stake. Here, staking has become a lucrative tool, which is why ETFs for Ethereum could represent a new fiscal frontier.
For ETH, this means that increased attention is imminent in the financial world, which, in the next step, should also pull Ethereum’s valuation upward. As things stand, it seems advisable for investors with a preference for ETH to monitor the further development of ETFs and staking. More news in these updates could significantly impact the course of Ethereum in the coming years.
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