ConsenSys founder Joe Lubin revealed that Ethereum ETF issuers are optimistic about receiving regulatory approval to offer staking features soon.
ConsenSys founder Joe Lubin said that the issuers of the Ethereum exchange-traded funds (ETFs) will soon get a regulatory nod to be able to offer staking feature. So far the US Securities and Exchange Commission (SEC) has only approved spot Ether ETF with no staking features citing manipulation concerns. This leaves the issuers at a loss as it prevents them from getting more staking yields.
The Ethereum co-founder stated that they have been in talks with the Ether ETF issuers. “They expect that to be greenlit reasonably soon,” he added. Furthermore, Lubin also mentioned that the fund issuers are focused on developing optimal solutions to address any challenges related to staking and slashing for their customers. He said:
“I think it’s going to be great for the technology and the ecosystem because they are leaning in to enable us to – as an ecosystem – do a better, more robust, more diversified job. I think it’s going to lead to greater client diversity as well.”
Spot Ethereum ETF Inflows Pick-Up
Last year in July, the US SEC granted nine issuers to list their Ethereum ETF on Wall Street. Despite a slow start in comparison to the Bitcoin ETFs, inflows in the spot Ethereum ETF have picked up pace over the past two months following Donald Trump’s election victory. As per Farside Investors data, the total inflows have now reached closer to $.2750 billion.
Yesterday, January 21, the total inflows across nine Ether ETFs stood at $74.4 million of which, the BlackRock Ether ETF (ETHA) alone recorded $56.3 million in inflows. Among other issuers, BlackRock has dominated the inflows totaling $3.890 billion so far.
On January 21, the SEC unveiled plans to establish a crypto task force focused on developing a regulatory framework for digital assets. The initiative will be led by Commissioner Hester Peirce, known for her pro-crypto stance. In a December interview with Coinage, Peirce hinted at an emerging pro-crypto shift within the financial regulator under the new administration. She said:
“If it changes from a majority of Commissioners who don’t want things to go through to a majority of Commissioners who do want things to go through, then yeah, it’s easier”.
Will ETH Price Catch Up?
Despite high expectations of an Ethereum price rally, the world’s largest altcoin has tested investors’ patience so far. At press time, the ETH price is trading 1% up at $3,294 levels with a market cap of $396 billion.
$ETH looks bottomed out, while everyone else is giving up..
Trump is buying $ETH, we will see a rally soon.
Stay patient. pic.twitter.com/vAolvVs0v6
— Mister Crypto (@misterrcrypto) January 21, 2025
However, analysts continue to be hopeful amid the surge in the Ethereum network activity. Furthermore, the Ethereum whale accumulation and exchange supply drop can aid in a rally ahead. Some market analysts note that the ETH ETH $4 514 24h volatility: 2.0% Market cap: $545.59 B Vol. 24h: $37.07 B price is just trading to its bottom and advised investors to hold the line of patience and prepare for a rally ahead.
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