“New SEC guidance will approve Ethereum-based exchange-traded funds, which will allow owners to earn additional income from staking. This was announced at Bernstein, writes The Block. “In conditions of lower rates [у TradFi] Ethereum’s current yield of 3%, which could increase to 4-5% as on-chain activity grows, is becoming more and more interesting,” the review said. Experts called the asset’s risk-reward ratio attractive and noted the strength of its fundamental indicators. […]”, — write: businessua.com.ua
New management SEC will approve Ethereum-based exchange-traded funds that will allow owners to earn additional income from staking. This was announced in Bernstein, writes The Block.
“In conditions of lower rates[in[уTradFi]Ethereum’s current yield of 3%, which could increase to 4-5% as onchain activity grows, is becoming more and more interesting,” the review said.
Experts called the asset’s risk-reward ratio attractive and noted the strength of its fundamental indicators.
Since the beginning of the year, Ether has increased in price by ~57%, behind Bitcoin (125%) and Solana (122%).
This was a result of problems with proving “hard money” compared to Bitcoin, competition from faster L1as well as reliance on L2 for scaling, which degrades user experience and holds back fee growth.
In addition to the addition of staking in ETFs, experts singled out the positive dynamics of inflows to exchange-traded funds, as well as a surge in network activity, as drivers of the situation improvement.
Ethereum daily on-chain volumes reached $7.13 billion
Ethereum’s transition to PoS and the burning mechanism stabilized the supply at about 120 million ETH. At the same time, 28% of the total amount is blocked in staking and another 10% in landing operations or L2-bridges.
Given that 60% of available coins have not moved over the past year, these factors indicate a stable investor base and favorable supply and demand dynamics, experts said.
It will be recalled that on May 23, the Commission approved the 19b-4 forms for the instrument, two months later – the S-1 applications. All offers do not include staking. At the time, Hester Pearce of the SEC assured that “any feature of the products is always open to review.”
In July, Bloomberg analyst Eric Balchunas suggested that both staking and the in-kind option would become real in the event of a change in the US president. Variant General Counsel Jake Czerwinski agreed, noting that it’s a matter of time, not opportunity.
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