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If regulators approve an ETF that allows institutions to directly pledge ETH, it could attract a wave of new investors. This would increase demand for Ethereum and could even push up its price. Right now, one of the most important things to watch is the amount of Ethereum available on trading platforms. As fewer ETH tokens are available for trading, some believe this supply squeeze could lead to higher prices.
In April, Ethereum will welcome the launch of the mainnet of the Pectra upgrade. This time, changes in the execution layer (Prague upgrade) and the consensus layer (Electra upgrade) are integrated. Pectra introduces 11 key Ethereum Improvement Proposals (EIPs) to enhance scalability, staking flexibility, and user experience. Overall, after this upgrade, the performance and stability of the Ethereum network will be improved at the technical level; at the economic level, the Ethereum staking economic model will be changed, which will affect the supply and demand relationship and market price of Ethereum; at the application level, it will attract more developers and users to enter the Ethereum ecosystem, promote the innovation and development of decentralized applications, and so on.
In the United States, a staking Ethereum spot ETF may also be approved. In the first quarter of 2025, asset management company 21Shares submitted an application on behalf of the CBOE BZX exchange, planning to introduce staking functionality to its spot Ethereum ETF. In addition, Fidelity submitted an S-1 form for the proposed Ethereum spot ETF, which includes staking functionality. Grayscale has also applied to provide staking functionality for the spot Ethereum ETF.
There is a consensus in the industry that one of the main reasons why Ethereum spot ETFs are less attractive is that current ETFs do not have a staking function. The launch of the staking function will allow Ethereum spot ETF holders to receive rewards for staking Ethereum. After staking, investors will receive an annualized return of 3-3.5%. With the launch of the staking Ethereum spot ETF, the inflow of funds into the Ethereum spot ETF may be greatly increased, thereby pushing up the price of Ethereum.