Good evening to all my friends. I hope you all are doing well. I am having a good day. Today i am going to discuss about Ethereum ETF staking and its potential impact on the market. Recently, many investment firms in the US have been applying for approval to stake Ethereum ETFs. Although this topic hasn't been widely discussed, it's crucial to understand its potential effect on Ethereum's price. Unlike Bitcoin, which operates on a Proof of Work consensus where large amounts of its supply need to be purchased to control the network, Ethereum works on a Proof of Stake consensus. To control Ethereum's network, one must become a validator, not just hold the supply. While Bitcoin has seen faster institutional adoption, Ethereum has seen less investment from firms at the same pace.
Previously, staking Ethereum in the US wasn’t legal, and platforms offering staking services faced regulatory issues. But now, with the government’s shift in stance, Ethereum could become a legal yield-generating asset. This would attract big investors, such as pension funds and wealth managers, who typically look for assets to generate returns. With Ethereum's supply becoming increasingly locked in staking, it could lead to a supply shock, which may raise the price. Additionally, the Ethereum Foundation has started staking Ethereum in DeFi protocols instead of selling it, reducing the selling pressure that previously affected the price. If staking is approved, institutions and individuals could stake Ethereum for returns, driving demand and possibly increasing its value in the long run. In conclusion, if Ethereum ETF staking is approved in the US, it could create a surge in demand, attracting large institutional investors, and positively impacting Ethereum’s price. That's it for today. Thanks & have a good day!!