BlackRock's digital asset head: Approval for staking could be a "huge leap" for the Ethereum ETF.

BlockBeats news, on March 21, reported by CNBC, Robert Mitchnick, head of BlackRock’s digital asset division, stated that the demand for Ethereum ETFs has been underwhelming since its launch last July, but the situation could change if certain regulatory hurdles can be “resolved.” Mitchnick said at the digital asset 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. Although he believes this is a “misunderstanding,” he also acknowledged that the inability to earn staking rewards in the fund could be one of the limiting factors. He said, “Clearly, the potential evolution of Ethereum ETFs has entered the next phase. It has proved that ETFs are a very attractive tool that allows many different types of investors to hold Bitcoin. Undoubtedly, for Ethereum, without staking, ETFs seem less perfect. Staking rewards are an important way to earn investment returns in this field, and none of the Ethereum ETFs launched included 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 plan to sell their crypto assets soon, this allows them to “put their crypto assets to work.” But Mitchnick does not expect an easy 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’; everyone can start. There are many rather complex challenges that need to be overcome to resolve this issue, but if these challenges can be addressed, there will be a leap in the activity we see around these products.”