According to a new report from Bernstein, Ethereum ETFs may soon offer staking yields, representing a significant advancement in institutional crypto investment.
The report states that integrating staking rewards into these ETFs would not only enhance their financial viability but also attract a large influx of assets, given Ethereum’s dominance in the blockchain industry.
With staking already accounting for 28% of Ethereum’s total supply and 63% of the total value locked in DeFi, the report highlights the strong fundamentals of the platform. Bernstein forecasts staking yields of 3-5% per annum, which could make Ethereum ETFs particularly appealing to institutional investors looking for ways to generate yield in a low-interest-rate environment.
Currently, Ethereum ETFs have around $11 billion in assets under management, and the potential approval of staking yields could drive even further growth in this sector by making them more attractive to investors seeking yield opportunities.