Staking, ETFs, Treasuries: Is Ethereum’s Valuation Being Redefined?
Ethereum is hitting a rare moment where multiple forces are coming together.
On-chain ETH staking continues to rise, shaping what could be considered an on-chain “risk-free rate.” In traditional markets, spot ETFs have been operating for over a year, with volumes and inflows accelerating — showing growing institutional interest. Meanwhile, U.S.-listed companies are increasingly adding ETH to their treasury reserves.
Staking, ETFs, and corporate treasuries are reinforcing one another, moving ETH beyond a simple token into a broader financial asset with yield, regulated access, and balance-sheet utility.
If Bitcoin is “digital gold,” Ethereum is becoming a “global ledger,” with 2025 marking a key moment of convergence.
I. Staking climbs — and an ETH base rate takes shape
The April 2023 Shanghai upgrade removed the exit overhang by enabling withdrawals, unlocking growth across staking. Liquid staking tokens (LSTs) expanded rapidly, and the staking rate climbed.
Staked ETH has surpassed 33.8 million — around $140 billion at current prices — representing over 25% of total supply, up from about 10% just a few years ago. This strengthens network security and, from a supply-demand perspective, increases ETH’s scarcity.
Crucially, staking is becoming the on-chain “rate anchor.”
Over the past year, an annualized return of 3%–5% has become broadly accepted and, in some institutional research, treated as an on-chain analogue to U.S. Treasuries, implicitly linked to the Treasury curve. ETH has evolved beyond a pure trading asset, establishing a foundation akin to fixed income.
However, a short-term countertrend has recently emerged. Starting on July 16, exit requests spiked: validator exits rose from under 2,000 to 475,000 by July 22, and wait times stretched from less than an hour to more than eight days.
According to The Block, about 670,000 ETH (roughly $3.1 billion) is currently in the exit queue — outpacing new staking by a wide margin and pushing processing times close to 12 days. In a rising market, the main drivers were unwinding leveraged staking loops, managing LST de-peg risk, and arbitrage, with Lido, EthFi, and Coinbase as the primary sources of exits.
Even so, the long-term trend remains intact. In 2024, U.S. Treasury yields remained anchored in the 4%–5% range, rendering ETH staking yields relatively less attractive on a risk-adjusted basis. With the Federal Reserve now initiating a rate-cutting cycle in 2025, however, ETH’s 3%–5% staking returns have regained their relative appeal and, in certain risk frameworks, are even being classified as a source of “excess yield.”
This suggests that Ethereum’s on-chain yield is becoming more deeply, albeit implicitly, tied to the global liquidity environment. In particular, restaking protocols such as EigenLayer have attracted over ten billion dollars’ worth of ETH, giving rise to a chain of logic: staking yield → restaking premium → protocol security.
In other words, ETH is no longer just an asset in itself, but is increasingly evolving into the foundational collateral of the Web3 financial system.
II. ETFs become the primary on-ramp for traditional capital
In May 2024, the U.S. SEC approved the 19b-4 filings for eight spot ETH ETFs, which began trading on July 23 — creating a regulated bridge to Wall Street. Spot ETH ETFs have now been live for over a year.
As a compliant entry point, ETFs offer institutions a straightforward way to gain exposure to ETH while reducing audit and accounting complexities. According to SoSoValue, U.S. spot ETH ETFs now hold more than $27 billion in net assets — roughly 5.3% of ETH’s market cap — with cumulative net inflows of $12.4 billion since launch.
Markets often overestimate short-term novelty and underestimate long-term impact, and ETH ETFs fit that pattern: average daily volumes remained muted through May 2025.
The inflection point came on August 11, 2025: single-day net inflows topped $1 billion for the first time. BlackRock’s ETHA drew $640 million and Fidelity’s FETH $277 million — underscoring a decisive shift toward institutions.
ETFs matter not only as capital channels but also as clean, auditable holdings, lowering barriers to institutional adoption of ETH. They also open cross-border channels for allocation and arbitrage. Market share is concentrating as well: BlackRock and Fidelity now control about two-thirds of the U.S. ETH ETF market, a top-heavy structure that may amplify flow dynamics and shift price discovery toward a more institutional regime.
III. ETH emerges on U.S. corporate balance sheets
If MicroStrategy’s BTC strategy was the landmark for crypto in corporate treasuries, 2025 is shaping up to be ETH’s turn. More U.S. public companies are adding ETH to their balance sheets — not as symbolic gestures, but through large, strategic allocations.
BitMine reports crypto holdings of more than $6.6 billion, up about $1.7 billion from $4.9 billion a week earlier. That includes 1.523 million ETH (at roughly $4,326 per ETH) and 192 BTC.
Separately, Cosmos Health (Nasdaq: COSM) announced a securities purchase agreement for up to $300 million with a U.S. institutional investor to launch an ETH treasury strategy, with BitGo Trust providing custody and staking infrastructure.
This marks a clear distinction from ETF exposure: while ETFs deliver portfolio exposure, direct treasury purchases establish ETH as a working asset — for diversification, cross-border settlement, and potentially employee or R&D incentives — signaling utility beyond mere price exposure.
Bottom line
Following a wave of bearish calls, Ethereum’s key narratives are now reinforcing one another:
- Staking yields provide a Treasury-like rate anchor.
- ETFs open a regulated allocation channel.
- Corporate treasuries bring real reserve and payment utility.
Together, these forces are shifting ETH from a token toward a core financial-infrastructure asset. If Bitcoin is digital gold, Ethereum is increasingly emerging as the liquidity core of a global ledger.
