Rate yields are key for returns here, Mitchnack said, as [Ether] ETFs lacked staking at launch.

BlackRock's head of digital assets Robbie Mitchnack called the Ether exchange-traded fund (ETF) a "resounding success" but acknowledged an important limitation. Speaking at the Digital Asset Summit on March 20, he noted that an ETF is "less perfect" without steaking, highlighting a key feature that is missing from the current offering.

"Stacking returns are a big part of how you get investment returns in this area, Mitchnik said. "And all of the [Ether] ETFs, of course, didn't have steaking at launch. So if that issue can be resolved... However, Mitchnik said adding steaking to Ether ETFs is not an easy task. "It's not as easy as if the new administration just authorizes something and then bam, you're done, you're ready to go, he said. "There are a lot of challenges to overcome, but if they can be overcome, I think it will be a step forward in terms of activity around these products. #ETH staking was first introduced in December 2020 as part of the #Ethereum network's transition from a proof-of-work consensus mechanism to proof-of-stake. By February 2024, staking deposits reached $85 billion, accounting for 25% of the cryptocurrency's circulating supply. Currently, the yield on Ether deposits ranges from 2 to 7% per year. However, there are risks associated with using ETH, including the possibility of being debited in the event of validator misconduct. This potential penalty may discourage traditional investors as it adds an additional layer of risk to their investments. The narrative surrounding Ethereum has at times been negative during this bull run, especially because the price of Ether has lagged behind other cryptocurrencies. Also speaking at the Digital Asset Summit, Ethereum co-founder Joseph Lubin said that the narrative about Ethereum for institutional investors is too big to describe. It's like trying to describe Internet protocols and Web protocols, Lubin said, adding: it can do everything, just like you can do almost anything on the Internet.

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