Analyst says Ether ETF staking could start by May

Ether (CRYPTO:ETH) exchange-traded funds (ETFs) in the United States could be allowed to offer staking as early as May, according to Bloomberg Intelligence analyst James Seyffart.

On April 9, the US Securities and Exchange Commission (SEC) approved the listing of options contracts for spot Ether ETFs, following its earlier approval of Bitcoin (CRYPTO:BTC) ETF options in September 2024.

However, while options trading has been cleared, staking remains under regulatory review.

Seyffart stated via X on April 9 that staking approval might happen before the end of May, but final decisions are not expected until later in the year.

“It’s possible they could be approved for staking early, but the final deadline is at the end of October,” he said.

He also noted intermediate deadlines in late May and late August.

Staking involves locking up ETH to support Ethereum’s proof-of-stake network and receive rewards, while options allow investors to speculate on or hedge ETH price movements.

Although Ether ETFs were introduced in June 2024, they have not yet matched the popularity of their Bitcoin counterparts.

Data from Farside Investors shows that as of April 10, Ether ETFs had $2.4 billion in net inflows compared to $35 billion for Bitcoin ETFs launched in January.

Analysts say the SEC's recent approval of Ether ETF options could encourage broader investor interest.

Asset managers are also awaiting regulatory clearance for in-kind creations and redemptions for both Bitcoin and Ether ETFs, a feature seen as essential for ETF efficiency.

BlackRock’s head of digital assets, Robbie Mitchnick, said in March that staking would improve Ether ETFs.

“A staking yield is a meaningful part of how you can generate investment return in this space,” Mitchnick said.

Jeff Park, head of alpha strategies at Bitwise Invest, commented in September that options markets tied to crypto ETFs create “extremely compelling opportunities” for participants.

At the time of reporting, the Ethereum price was $1,524.50.

However, staking is seen as the more critical component for Ether ETF development moving forward.