I just noticed an interesting move from BlackRock – they have just reduced the staking fee on their Ethereum ETF from 18% to 10%. According to Bloomberg ETF analyst James Seyffart, this move is to stay competitive as demand for ETH staking rewards is skyrocketing. Most spot ETH funds in the US have also applied to add staking features, and some issuers like Grayscale have started distributing rewards to investors.

What’s happening with staking demand is quite impressive. The total amount of ETH staked has just reached a record high of 37 million ETH, accounting for 30.6% of the total circulating supply. There are even over 3 million ETH waiting to be entered into validator nodes – this number shows that demand in the staking segment is truly strong. For the first time, the deposit queue has surpassed the withdrawal queue at the end of 2025, a clear sign of increasing institutional interest.

But not everyone is optimistic. Culper Research issued a rather sharp warning: recent network upgrades like Fusaka have reduced fees for validators, thereby narrowing the overall profit paid to stakers. They believe that lower yields will decrease staking demand, which could ultimately weaken institutional acceptance. The firm has even placed a short bet on ETH, arguing that demand in the staking sector will decline and drag ETH’s price down.

However, Vitalik Buterin – co-founder of Ethereum – has a different view. He believes that upcoming upgrades will be net beneficial for developers and organizations, especially by reducing the overall costs of running independent validators. So who will be right in the end remains an open question.

Currently, ETH price is fluctuating around $2.32K USD. Bollinger bands indicate the potential for a volatile breakout, but whether it will be an upward or downward move depends on broader macroeconomic conditions and ongoing geopolitical tensions. All these factors will determine whether staking demand continues to rise or gets reversed.