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BlackRock Digital Assets Head: Approval for Staking Could Be a "Huge Leap" for Ethereum ETF

ChainCatcher news, BlackRock's head of digital assets, Robert Mitchnick, stated that the demand for Ethereum ETFs has been lukewarm since their launch last July, but the situation could change if some regulatory issues hindering their development can be "resolved." Mitchnick said at the digital assets summit held in New York City on Thursday that the general perception is that the success of Ethereum ETFs seems "lackluster" compared to the explosive growth of Bitcoin funds. While he believes this is a "misunderstanding," he also acknowledged that the inability to earn staking rewards in the funds could be one of the limiting factors.He said, "Clearly, the potential evolution of Ethereum ETFs has entered the next phase. It has proven that ETFs are a very attractive tool through which many different types of investors can hold Bitcoin. Undoubtedly, for Ethereum, without staking, the ETF appears less than perfect. Staking rewards are an important way to earn investment returns in this space, and none of the Ethereum ETFs launched included staking."Staking is a way for investors to earn passive income by locking tokens on the network for a period of time. This allows them to "put their crypto assets to work" if they do not plan to sell their cryptocurrencies soon. However, Mitchnick does not expect a simple solution.He explained, "This is not a particularly simple issue. It's not as if the U.S. government approves a certain proposal and then it's 'done,' and everyone can get started. There are still many quite complex challenges to overcome to resolve this issue, but if these problems can be solved, we will see a leap in activity around these products."
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