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Cancellation of staking plan may weaken demand for spot Ethereum ETF
2024-05-22 21:50
Odaily News Many in the crypto market believe that the key changes made by issuers to spot Ethereum ETF applications are good for the Ethereum blockchain, but bad for the ETF product itself. Issuers including Fidelity and Ark have canceled plans to allow staking of Ethereum ETFs. Staking has always been a sensitive issue for Ethereum because it enables holders to earn a yield, raising questions about whether the token should be considered a security under U.S. regulators. Some market participants believe that if the ETF cannot stake its tokens, then the appeal of spot ETFs will be less than directly purchasing staking-enabled Ethereum.