Bernstein: Spot Ether ETFs Will Soon Feature Staking
Bernstein Research reports that under a potentially more crypto-friendly Securities and Exchange Commission during the next presidential term, United States Ethereum exchange-traded funds (ETFs) may soon offer additional staking yield.
This would involve stakers locking up their Ether as collateral with validators on the Ethereum network and earning ETH payouts from network fees and other rewards. However, there is also a risk of losing ETH through “slashing” if the validator behaves badly.
Currently, staking ETH yields around 3.1% annualized percentage returns (APR), but Bernstein Research predicts that this could increase to 4-5% with higher activity levels on the network. In July, the Securities and Exchange Commission allowed spot Ethereum ETFs to trade in the US but did not permit them to stake ETH for extra yield, despite requests from various ETF issuers.
However, with the potential for a more crypto-friendly administration under President-elect Donald Trump, it is possible that this restriction may be lifted in the future.
