Key Insights:
- Investor demand for the Ethereum ETF is likely to surge for staking-capable funds, but Bitcoin ETFs and BTC treasury companies may lose some shine.
- The US Treasury and IRS have issued new rules allowing exchange-traded products (ETPs) to stake digital assets and share rewards with retail investors.
- Treasury Secretary Scott Bessent’s announcement marks a shift for regulated crypto ETFs, offering US investors a route to earn staking rewards via mainstream financial products.
The US Treasury and IRS delivered a breakthrough for exchange-traded products (ETPs) and for American crypto investors seeking real blockchain yield. On November 10, Treasury Secretary Scott Bessent’s office announced new rules allowing users to stake digital assets and share rewards with retail holders.
That means the Ethereum (ETH) ETF just got a whole lot more attractive. Staking went from a compliance risk to a tax-recognized, mainstream financial activity.
Ethereum ETF: What Changed And Why It Matters?
Legal gray zones and the IRS’s murky stance on staking rewards have limited some of the advantages of investing in an Ethereum (ETH) ETF.
But the new IRS and Treasury guidance changes that. It unlocks staking for regulated US vehicles (on the condition that they play by some specific new rules).
Bill Hughes, a well-known regulatory voice and Consensys lawyer, summed it up.
Under the safe harbor announced, trusts may stake digital assets (on permissionless proof-of-stake networks) as long as they hold only one digital asset type and cash and use a qualified custodian to manage keys and execute staking.
However, they must also maintain SEC-approved liquidity policies, so redemptions can occur even if assets are locked up, and establish arms-length relationships with independent staking providers.
Meanwhile, their activities must be limited to holding, staking, and redeeming (with absolutely no discretionary trading allowed). He stated:
“As a result, more regulated entities can now stake on behalf of investors, likely increasing staking participation, liquidity, and network decentralization… LET’S GOOOO.”
Ethereum (ETH) ETF in Focus
Since only Ethereum and other proof-of-stake (PoS) networks can be staked for rewards, the appeal of investments like Bitcoin ETF and Bitcoin treasury companies could lose some shine with no yield for spot BTC ETF.
And wth regulatory and tax clarity finally in place, American funds are expected to leap at the chance. Hughes notes:
“In short, Revenue Procedure 2025-31 transforms staking from a compliance risk into a tax-recognized, institutionally viable activity, accelerating mainstream adoption across proof-of-stake blockchains.”
In the ETF world, major voices like Bloomberg’s Eric Balchunas were quick to recognize the moment. He commented:
“Safe to say this is the first time Treasury secretary has tweeted about ETFs.”
For Balchunas and many others, mainstreaming ETH staking is not just a paperwork fix for the Ethereum ETF. It’s a redefinition of what regulated crypto investing can look like in the US.
Ethereum News: Institutional Impact and Market Shifts
Let’s get granular. With the IRS confirming that ETPs can pass staking rewards directly to investors, tax hurdles fall away. And yield-starved American portfolios get a much-needed boost.
Ethereum ETF providers like BlackRock, Fidelity, and VanEck will need to update fund designs and risk models to accommodate staking.
Meanwhile, with yield now a front-and-center feature, investor demand is likely to surge for staking-capable funds.
According to a recent survey of more than 1,000 professional and HNW investors by Sygnum Bank, 70% said they would increase ETF allocations if staking were enabled.
All the while, Bitcoin ETFs and Bitcoin treasury stocks may lose some luster, with no way to match the yield-generating power on tap for proof-of-stake holdings.
As staking turns institutionally viable, expect flows to pivot toward funds offering conservative returns plus blockchain exposure.
The Safe Harbor Framework: Compliance Meets Decentralization
One of the most powerful elements of the new safe harbor is its focus on compliance without sacrificing decentralization.
By requiring independent custodians, arms-length staking relationships, and strong liquidity policies, the framework aligns SEC, IRS, and investor protections in a single package.
In practical terms, that means US investors get the best of both worlds. Direct access to network rewards, but within vehicles engineered for transparency, security, and seamless redemption like a regulated Ethereum (ETH) ETF.
Meanwhile, it paints staking less as wildcat yield-hunting and more as a legitimate, conservative strategy for mainstream portfolios.
Ethereum ETF Road Ahead: New Risks, New Rewards
Of course, staking isn’t without its shadows. Investors need to weigh custody risks, network slashing penalties, and the nuances of SEC disclosure requirements.
However, in the bigger picture, US policy is writing a new chapter: regulated crypto yield is no longer a backroom deal.
It’s front-of-house, with benefits flowing from Ethereum ETF directly to holders through products they know and trust.