Phyrex|Mar 21, 2025 10:38
The biggest advantage of spot ETFs is security, especially in the current situation where there are so many hackers on the chain. Many institutional investors are not willing to pledge their purchased ETH on the chain, let alone the fact that official staking is slightly more complex. Non official staking is not easily considered by traditional capital, and ETFs do not have this problem. ETF custody is regulated, and if any problems occur, 100% compensation will be provided, especially for financial giants like BlackRock.
On the second hand, in the eyes of traditional investors, the staking of ETH is actually no different from mining Bitcoin. Don't worry, I estimate that many friends will curse when they see this. What I said is that there is no difference in considering the annualized return of investment. For example, the staking of ETH has an annualized return of 4%, The annualized return of BTC mining is approximately 25% (not very accurate).
Why not invest in BTC mining instead of ETH staking? One is the issue of fund utilization, and the other is the issue of POW and POS. The POW network does not require staking BTC, which means that mining is not fundamentally related to how much BTC you have, but is influenced by the BTC price. Of course, there are also electricity, labor, and so on.
The biggest advantage of POS is its currency based staking, which is similar to the concept of buying stocks for dividends, except that stocks are affected by performance and dividends are uncertain, while ETH is affected by the amount of staking in the POS network.
Overall, staking ETH spot ETFs can safely generate additional currency based returns, effectively reducing investment costs.
This tweet is sponsored by @ ApeXProtocolCN | Dex With Apex
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