TechFlow news, on July 23, according to Jinshi News, investor sentiment ahead of the launch of Ethereum ETFs in the United States has been relatively cautious, a stark contrast to the enthusiasm seen prior to the introduction of Bitcoin ETFs. The main issue lies in the U.S. Securities and Exchange Commission (SEC) excluding Ethereum's "staking" mechanism, which allows users to earn rewards by locking up ether to help secure the network.
Under current regulations, the SEC only permits ETFs to hold conventional, non-staked ether. CoinShares analyst McLoughlin noted, "Institutional investors looking at Ethereum know that staking generates yield." He likened the situation to a bond manager wanting to buy bonds but not collect interest—going against the very purpose of buying bonds. McLoughlin believes investors will continue staking their ether outside of ETFs to earn returns, rather than paying fees to hold ether within ETFs.
