Even as the crypto space continues to grow, Ethereum has retained its position as one of the biggest blockchains and cryptos in the sector. Second, only to Bitcoin itself, Ethereum has established its presence by offering not just a blockchain that is the foundation for multiple sub-sectors like DeFi and NFTs but also its token that offers low fees and fast transactions.
It comes as no surprise then that so many investors are looking to use Ethereum in different ways. Given the fact that so many other tokens are built off the Ethereum network and can be stored in an ERC20 Wallet, the demand for Ethereum-compatible wallets has only grown in the last few years. Using the ERC20 wallet, users enjoy access to several decentralized exchanges (DEXs), in addition to non-custodial storage and access to several other digital assets and even fiat currencies.
Staking Comes to ETFs?
Luckily for Ethereum lovers, there will be even more avenues to invest in the ecosystem moving forward. This comes as the New York Stock Exchange (NYSE) has filed with the U.S. Securities and Exchange Commission (SEC) to add staking to the Bitwise Ethereum ETF (ETHW). This is roughly a month after a similar filing was done to add staking to Grayscale’s Ethereum ETF.
The Ethereum ETFs were one of the biggest wins for the ecosystem in 2024 and this year seems to be building on this momentum. Staking is one of the most popular activities in the Ethereum ecosystem as it sees investors lock away their tokens for a period of time and later receive interest on them. As a low-risk and passive way to earn income, staking has quickly caught the attention of mainstream investors who are turning to cryptocurrency.
If these filings are approved, we will see an increased rate of Ethereum staking, as well as more rewards for investors.
Goodbye Holesky
Another notable development in the Ethereum ecosystem is the removal of support for Holesky, an upgrade that was added in September 2023. It’s been confirmed that core Ethereum developers will stop support for the testnet in September 2025.
So far, Holesky has been instrumental in the development of Ethereum infrastructure and staking. As it is being phased out, it’s believed that some developers will keep it for future experiments, though a new upgrade called Hoodi is being introduced into the ecosystem as well as the Pectra upgrade for later this month.
All of these changes spell big things for Ethereum as it implies that not only is the ecosystem being developed on the backend but there will be greater acceptance of the asset class in the mainstream. Staking has been somewhat of a hidden gem of the crypto sector for years but should ETFs with staking capabilities be rolled out in the US, more attention will be paid to the activity as a whole.
And while a major testnet within the Ethereum ecosystem is being retired, there’s care being taken to carry developers along and phase it out over time. With all these announcements being made in such a short period, it seems the future is bright for Ethereum both as an ecosystem and as an investment vehicle.
