Ethereum News Today: Ethereum Staking ETF Approval Looms as Institutional Demand Rises

Experts are increasingly pointing to Ether (ETH) as a potential catalyst for the next cryptocurrency bull run, driven by the anticipated approval of staking within U.S.-listed Ethereum spot ETFs. Analysts argue that this development could unlock significant institutional inflows by offering attractive yields of up to 10%—a level that, when combined with growth potential, could redefine how institutional investors approach digital assets [1]. Markus Thielen of 10x Research suggests that the inclusion of staking in these ETFs could lead to a "monumental structural shift," boosting Ethereum’s institutional appeal and market valuation [2].

With the U.S. Securities and Exchange Commission (SEC) recently acknowledging Nasdaq’s request to include staking in the iShares Ethereum ETF, speculation is mounting that approval is imminent [3]. Nate Geraci, president of NovaDius Wealth Management, views this as a pivotal step in the SEC’s regulatory roadmap and warns it could be the next target on its enforcement list. If approved, Ether staking within ETFs may not only outperform Bitcoin-based products but also redefine how institutional capital flows into the crypto space [4].

From a portfolio strategy perspective, Ethereum ETFs with staking benefits offer a compelling alternative to Bitcoin-based options. Ryan McMillin, CIO at Merkle Tree Capital, emphasizes that institutional investors, particularly pension funds, are drawn to predictable yield over speculative gains. Ethereum’s ability to generate a 3–5% yield while still offering growth potential makes it a strategic addition to diversified portfolios [5].

Furthermore, the approval of staking could flip the switch on institutional demand by providing a compliant and accessible way to earn yield without handling private keys. Hank Huang of Kronos Research argues that this would significantly enhance liquidity and on-chain participation, potentially uplifting the entire Ethereum ecosystem [6]. He envisions the launch of yield-bearing Ether ETFs as a new benchmark for integrating crypto into traditional finance.

While Ethereum gains traction, the broader crypto market faces mixed signals. On-chain data indicates that long-term Bitcoin holders are selling as prices approach resistance levels, with institutional actors like Galaxy Digital reportedly offloading large portions of their holdings [7]. However, Steve Gregory of Vtrader remains bullish, noting the strong correlation between global liquidity and Bitcoin’s price movement. Despite concerns over a cooling U.S. demand, as suggested by the Coinbase Premium Index, the market’s long-term trajectory remains optimistic [8].

The coming months will likely hinge on regulatory developments and institutional adoption. If the SEC finalizes staking approvals for Ether ETFs, it could trigger a surge in demand and valuation growth, potentially marking the beginning of a new bull cycle in the crypto market [9].

Source: [1] ETHNews (https://coinmarketcap.com/community/articles/688b0529bc9aab1b4c703876/)