Staking yield may soon be available for US Ether ETFs

Ethereum (CRYPTO:ETH) exchange-traded funds (ETFs) in the United States could soon include staking yield, according to a Dec. 2 report by Bernstein Research.  

The research firm suggests that with a potential shift in leadership at the Securities and Exchange Commission (SEC) under President-elect Donald Trump, approval for ETH staking yield could be granted.  

Staking involves locking up Ether as collateral with a validator on the Ethereum blockchain.

In return, stakers earn payouts from network fees and rewards but risk losing collateral if the validator misbehaves.  

Currently, staking Ether yields about 3.1% annualised returns, with some projections suggesting that the yield could rise to 4-5% with elevated activity levels on the Ethereum network, Bernstein noted.  

In July, the SEC approved the launch of spot Ethereum ETFs but excluded staking as an option for extra yield.

However, with the possibility of crypto-friendly appointments within the SEC under the new administration, staking may become a feature sooner than expected.  

The research also highlighted a significant increase in investor interest in Ethereum, noting a strong reversal of sentiment.

In 2024, Ether investment funds saw record net inflows of $2.2 billion, surpassing the previous high set in 2021.  

Bernstein views Ethereum as an attractive investment opportunity, particularly given the growing interest in Ethereum ETFs.  

Matthew Sigel, head of digital asset research at VanEck, predicts that by 2030, the Ethereum network could generate up to $66 billion in annual free cash flow, potentially pushing the price of Ether to as high as $22,000 per token.  

At the time of reporting, the Ethereum (ETH) price was $3,631.98.