I just noticed that BlackRock has reduced the staking fee on their Ethereum ETF fund from 18% to 10%. This move is very significant because currently, the demand for ETH staking rewards is skyrocketing. Almost all ETH spot funds in the US are looking to add staking features to their products, and some issuers like Grayscale have started sharing staking rewards with investors.

The interesting part is that the amount of ETH staked has reached a milestone of 37 million ETH for the first time, accounting for 30.6% of the total circulating supply. This demand is so high that the validator entry queue has surpassed the exit queue at the end of 2025. As of now, over 3 million ETH are still waiting to be staked into the system. This is a clear signal that institutional investors are seeking the 3% rewards that staking offers.

But not everything is optimistic. Culper Research has issued a warning that recent network upgrades could reverse this trend. They point out that upgrades like Fusaka have reduced validator fees and narrowed profit margins. When yields decrease, demand for staking will also weaken, which could diminish institutional acceptance. Culper Research even notes that the number of active validators is decreasing, and they believe this will lead to even lower ETH prices.

However, Vitalik Buterin has a different perspective. The co-founder of Ethereum believes that upcoming upgrades will bring net benefits to developers and organizations. He thinks these updates will reduce the operational costs for validators, especially for independent validators.

Currently, ETH price is fluctuating around $2.31k, close to key support levels. It remains to be seen how institutional investors will react to these changes in the long term. Nonetheless, one thing is certain: demand for ETH staking will continue to be a major factor influencing prices and the development of the Ethereum ecosystem.