CoinShares Analyst: An Ethereum ETF without a staking feature is like a "bond with no yield."

Golden Finance reports that investors are more cautious and divided before the launch of Ethereum ETFs in the United States, a stark contrast to the widespread frenzy prior to the launch of Bitcoin ETFs. One major concern for some investors is that the U.S. Securities and Exchange Commission has ruled out "staking," a key feature on Ethereum's blockchain. Staking allows Ethereum users to earn rewards by locking their Ether coins, helping protect the network. Rewards or earnings appear in newly issued Ether coins and part of network transaction fees. Under current structure, SEC will only allow ETFs to hold regular, uncollateralized Ether coins. CoinShares analyst McLug said: "Institutional investors interested in Ethereum know that staking can yield returns." "It's like a bond manager saying I want to buy bonds but don't want interest; it goes against why you'd buy bonds." McLug believes that instead of paying fees and holding Ether within an ETF, investors will continue staking outside of ETFs for profits.