The approval of the US registered ether spot exchange trade fund will bring a huge influx of money from the facility to Ethereum, and perhaps it can run for the Bitcoin ETF for money, analysts say.
He told Cointelegraph, the research director of Markus Thielen, 10x research director, that keeping Ethereum ETFs will increase yields and “a dramatic restructuring of the market.”
The US ETF issuer is still waiting for the etheric ETF to be able to offer staking after the Securities and Exchange Commission filed numerous requests for permission earlier this year.
Nate Geraci, president and ETF analyst at Novadius Wealth Management, said in an X post Wednesday that Ethereum ETF Staking could be on the agency's “hit list” given the SEC recently granted an application for NASDAQ to add staking to BlackRock's Ishares Ethereum ETF.
sauce: Nate Gelach
Interest in spot ether ETFs may surge after approval
Thielen predicted that increased yields would likely result in a surge in spot ether ETFs along with increased activity in the Ethereum options market.
According to Thierren, the basic trading between spot ether ETFs, which already offer around 7% annual returns and Ethereum futures, suddenly becomes attractive, adding an additional 3% yield.
“This does not reduce the likelihood of total returns by 10%. With a leverage of 2-3 times, institutional investors can target 20-30% of annual revenue from this arbitrage strategy,” he said.
“This marks a monumental structural change in how institutional capital flows into Ethereum, unleashing a new era of harvest-driven participation.”
Extra Yields make EtherETFs an attractive portfolio addition
Ryan McMillin, chief investment officer at Australia's crypto investment manager Merkle Tree Capital, told Cointelegraph that yields are a major consideration for institutional investors before they can be loaded into their investments.
The main reason is that institutions like pension funds prioritize stable and predictable income over uncertain capital gains. The yield is perceived to reduce volatility, he said.
“Ether ETFs offer diversification from both Bitcoin as digital gold to ETH as 'Stablecoin Infrastructure', but are equally important and yields that do not apply to Bitcoin,” he said.
“A 3-5% yield would be an attractive portfolio addition for ETH ETFs' growth potential, which is very unique from a portfolio perspective.”
Approvals may promote liquidity and on-chain participation
Hank Huang, CEO of Kronos Research, told Cointelegraph that staking approvals on Spot Ether ETFS will change the game of institutions waiting for compliant ways to win on-chain yields without touching private keys.
Related: cboe, nayse arca sec rule change request to streamline crypto etf list
“Ether ETFs provide yield and asset growth. They switch on, increase liquidity and create a greater appetite for on-chain participation,” he said.
“By combining income and benefits, these ETFs attract serious capital and promote higher valuations across the ecosystem.”
Huang predicts that ETFs, which blend smooth and flexible exits and staking rewards, will raise the bar, setting a “new gold standard” to guide crypto into mainstream finance.
magazine: Bitcoin $500K prediction, Spot Ether Ether ETF 'Staking Problem' – Thomas Driver
