From Yahoo Finance: 2025-03-21 19:00:00

Ethereum ETFs are struggling with outflows and price declines, but the introduction of “staking” could potentially help. The largest Ethereum ETFs have plummeted 43% in the past three months, while Bitcoin ETFs have only dropped 13%. Efforts are underway to persuade the SEC to allow staking in Ethereum ETFs to boost investor interest.

BlackRock’s digital assets chief, Robert Mitchnick, believes that staking could be a game-changer for Ethereum ETFs. Staking offers rewards for locking up crypto, which could generate investment returns and increase investor interest in Ethereum ETFs. Mitchnick’s comments come as Bitwise Asset Management and the NYSE seek a rule change to permit staking rewards for the Bitwise Ethereum Trust.

Approximately $527 million has been withdrawn from the two largest Ethereum ETFs in the past month. Ethereum ETFs with a total of $7 billion in assets are significantly smaller than Bitcoin ETFs, which have around $95 billion. Bitcoin and Ethereum are the only cryptocurrencies allowed in spot ETFs, while others trade in futures funds.

Ethereum ETFs could see a boost with the introduction of staking. The struggle with outflows and falling prices may be alleviated if staking rewards are permitted, increasing investor interest and potentially boosting returns in the Ethereum ETF space. The push for staking in Ethereum ETFs continues as stakeholders seek SEC approval.

Read more: Why ‘Staking’ Could Give Ethereum ETFs a Much-Needed Boost