Ethereum ($ETH) ETFs Expected to See Massive Inflows of Institutional Funds Once Staking Is Allowed

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If the staking of Ethereum (ETH) spot-listed index funds is approved in the United States, there is an analysis suggesting that institutional funds are likely to flow into the Ethereum market on a large scale. This is in line with the prospect that it could emerge as a strong investment alternative to the Bitcoin (BTC) ETF.

Marcus Thielen, Head of Research at 10x Research, emphasized in an interview with Cointelegraph that "Staking through ETFs will not only increase returns but also significantly change the market landscape." He particularly predicted that if the U.S. Securities and Exchange Commission (SEC) officially approves staking, the institutional investment attractiveness of Ethereum will grow dramatically.

Currently, ETF issuers have been submitting requests to the SEC since the beginning of the year to provide staking functionality and are waiting for related approvals. Such regulatory progress could bring an important turning point to the ETF structure.

Nate Geraci, an ETF expert and CEO of NovaDius Wealth Management, also revealed that the SEC is officially reviewing Nasdaq's application centered on adding staking functionality to BlackRock's ($BLK) iShares Ethereum ETF. He analyzed that the introduction of staking in Ethereum ETFs is likely to become the SEC's next regulatory target.

Moreover, staking has significance beyond simply improving returns. It is evaluated as a key function that can strengthen long-term holding incentives, adjust market liquidity, and most importantly, attract new investors to ETF products. Therefore, Ethereum ETFs with added staking options are expected to have differentiated competitiveness compared to existing Bitcoin ETFs.

The key lies in the SEC's final decision. Depending on the approval and timing, significant ripple effects are expected in Ethereum prices, ETF market structure, and institutional fund flows. Amid a continued more conservative securities supervision trend compared to the Trump administration, attention is focused on whether the Ethereum ETF can overcome the staking threshold.

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#EthereumETF#Staking#USASEC#InstitutionalInvestment#BitcoinETF

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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