Looks like everyone already knows about the possibility of staking crypto spot ETFs. There have been various approvals before, but nothing has been fully implemented yet. Early this morning, Bespoke's tweet officially gave the green light for staking crypto spot ETFs. Starting today, all compliant BTC, ETH, SOL, and other crypto spot ETFs can be staked by fund managers, and the earnings can be legally distributed to investors. This is great news, and it seems likely that institutions will soon announce staking starting with ETH and SOL. But is this good news for existing DeFi staking projects? Personally, I think it’s not just neutral—it’s actually bearish. Staking institutions must be licensed, regulated, and capable of custody. ETF institutions can’t just randomly pick nodes. All staking must operate within the framework of traditional financial regulations. Currently, capable entities include Coinbase Custody, BitGo Trust, or regulated banks with compliance mechanisms. For on-chain DeFi protocols, without a complete KYC and AML system, it’s simply out of the question. So, when traditional institutions enter the staking space, they will inevitably take away DeFi users. Honestly, if it were me, I’d also choose regulated institutions—on-chain DeFi is just too risky right now. Can you imagine BlackRock staking over 1 million ETH on an unregulated on-chain protocol? Sponsored by @Bitget｜Save the most on fees, grab the best rewards, and become a VIP at Bitget!