BlackRock expects increased inflows into Ethereum ETFs if staking is enabled

Ethereum ETFs are not in particular demand from investors compared to Bitcoin ETFs. However, the situation may change when exchange-traded funds have ETH staking enabled, Robert Mitchnick of BlackRock believes.

Staking allows investors to generate passive income by locking tokens up on the network for a period of time. However, Mitchnik believes that resolving the regulatory issues regarding the exchange-traded funds getting permission to stake ETH will not be simple and will take time. The US Securities and Exchange Commission is planning to initiate discussions to determine the status of staking.

Ethereum has become one of the most underperforming cryptocurrencies in recent months. It has dropped in price by more than $40 over the year on weaker revenue following the latest major tech update and growing competition from Solana. This week, Standard Chartered slashed its price target on the altcoin by more than half, CNBC notes.