First Ethereum Staking ETF Begins Trading, Boosting ETH Demand

Paul
4 hours ago Updated 2 hours ago
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Ethereum logo shines amid digital tokens, symbolizing ETH staking ETF momentum

Highlights

  • REX Shares launches $ESK, first U.S. Ethereum ETF merging staking and spot.
  • Grayscale prepares 1.5M ETH for staking as SEC reviews approval.
  • SEC decision could reshape ETH market by unlocking staking ETFs for competitors.

The first U.S staking Ethereum ETF is listed. It marks a change in the way investors can access ETH price exposure as well as staking rewards in regulated markets.

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Ethereum Staking ETFs Gain Momentum as Grayscale Prepares Move

REX Shares launched the REX-Osprey ETH + Staking ETF, trading under the ticker $ESK. The fund gives investors direct spot ETH exposure while distributing rewards generated from real on-chain staking.

The company said the goal is to provide monthly returns, similar to income-based products in traditional finance. REX has already rolled out ETFs for Dogecoin, XRP, and Solana but $ESK is the first to merge Ethereum spot holdings with staking yield.

By locking ETH for staking, these products reduce liquid supply while giving institutions and retail investors yield options previously available only through decentralized finance. The growth and income investment might be more attractive considering the estimated 3% to 5% yield every year on ETH.

Grayscale appears to be equally planning to stake its ETH once it gains approval. Blockchain data shows its Ethereum Trust shifted more than 40,000 ETH in the last week.

It could represent part of a plan to prepare 1.5 million ETH for staking. Transfers of 3,200 ETH per wallet, each worth roughly $14.6 million, suggest the firm is actively setting up for validator operations.

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SEC Decision on ETH Staking ETFs Could Reshape Market Dynamics

The SEC’s final deadline for decisions on most ETH ETFs is next month, and approval of staking features could open the door for competitors. James Seyffart, an ETF analyst at Bloomberg, stated that the SEC has not made up its mind about staking for ETH.

Recently, Grayscale Ethereum ETFs gained approval to trade under generic listing standards, a move seen as a step toward broader staking integration. When there are a high number of ETFs that involve staking, a significant amount of ETH would be tied up.

Thus, more demand will alter ease of trading within exchanges and cause an increase in ETH price. This modification has the potential to render Ethereum more valuable in the long term. It combines institutional adoption with decentralized yield.

The development shows an increased connection between blockchain and Wall Street. The income plans are now being built into ETFs and are available to regular investors.

Previously, these plans were only accessible to crypto investors. If the SEC accepts staking for more ETH ETF issuers, Ethereum could set the precedent for future yield-driven ETF products.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Paul Adedoyin is a crypto journalist with 4+ years experience who provides timely news, in-depth research, and insightful content to inform and empower his audience. His works have been featured on sites such as CryptoMode, CryptoNewsFlash among others. He holds a degree in Geophysics from OAU, Nigeria. When he's not writing, he loves watching soccer and reading educative journals. He can be reached via [email protected]
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.