BlackRock Digital Assets Executive: Approved Staking Could Be a 'Major Leap' for Ethereum ETF

BlockBeats News, March 21st, according to CNBC's report, Robert Mitchnick, head of BlackRock's digital assets division, stated that the demand for an Ethereum ETF has been lackluster since its introduction in July last year, but the situation could change if some regulatory issues hindering its development could be "resolved."

Mitchnick said at a digital asset summit held in New York City on Thursday that the success of an Ethereum ETF has been seen as "unremarkable" compared to the explosive growth of Bitcoin funds. Although he believes this is a "misunderstanding," he also acknowledged that the inability to earn staking rewards in the fund could be one limiting factor.

He said: "Obviously, the potential evolution of an Ethereum ETF has entered the next stage. Indeed, ETFs are a very attractive vehicle, through which many different types of investors could hold Bitcoin. Undoubtedly, for Ethereum, without staking, an ETF seems less than perfect. Staking rewards are a significant way for you to gain investment returns in this space, and all Ethereum ETFs at launch did not include staking."

Staking is a way for investors to earn passive income by locking up tokens on the network for a period of time. If investors do not intend to sell their cryptocurrency soon, this can allow them to put their crypto assets "to work." However, Mitchnick does not expect a straightforward solution.

He explained: "This is not a particularly straightforward issue. It's not like the U.S. government approves a scheme, and then it's 'done,' and everyone can start. To address this issue, there are many quite complex challenges to overcome. But if these issues can be resolved, then we will see a leap in activity around these products."