Staking becomes the main trend: Outlook for ETH investors in 2026

By 2026, staking will no longer be an isolated ancillary feature for ETH investors but will become a central element, shaping how institutions approach crypto, influencing product design, profitability, and risk management across the market.

In the short term, selling pressure is limited thanks to staking, but ETH is no longer “locked up.” With smooth withdrawal processes, Ether is now traded like a profitable position, capable of flexibly increasing or decreasing based on market sentiment.

Kean Gilbert, Head of Institutional Relations at Lido Ecosystem Foundation, said that the past year has laid the groundwork for institutions to accept staked Ether (stETH). The clearest evidence is last December, when asset management firm WisdomTree launched an Ether trading product that is staked (ETP) using Lido’s stETH, listed on major European exchanges like SIX, Euronext, and Xetra. The product is fully staked — a design Gilbert believes will shape the next trend.

This process took over a year with hundreds of questions from issuers to ensure safety, including about 450 questions during due diligence. “A fully staked product involves complex operations, but it will become the standard that investors increasingly expect.”

Many ETFs and ETPs currently hold some ETH un-staked to ensure liquidity and redemption requirements, but Gilbert argues this approach reduces profits. If Ethereum staking yields fluctuate around 3%, a product staking only 50% ETH means sacrificing yield on the remaining half.

“With a 50% staked ETF, you only receive half the rewards. If you can stake 100% and still meet T+1 or T+2 redemption, the economic efficiency is clearly better.”

Europe has demonstrated this is feasible. Gilbert emphasized that fully staked products using liquid staking tokens like stETH can meet redemption deadlines while maintaining full staking. He expects the US market to follow a similar path.

“What we see in Europe with WisdomTree’s stETH ETP is a clear signal of the trend for institutional ETH products,” Gilbert said.

“Full staking structures based on stETH reduce the need to hold large un-staked amounts for redemptions because liquidity is already available. With around $100 million in stETH liquidity that can be realized within 2% of ETH price, issuers can keep products fully staked without reducing staking rewards for investors.”

Staking is becoming the primary way for crypto holders to generate profits from their assets, but in the US, this activity is under increasing scrutiny. The SEC is clearly distinguishing between protocol-level staking (proof-of-stake network validation) and investment staking services, which is clashing with the next phase of crypto ETFs development.

“America is closely watching what happens in Europe,” Gilbert said. “Before WisdomTree’s launch, the tone from US regulators had become more comfortable with staking. I expect a similar process to unfold, with agencies focusing on how staking ETF structures are built rather than whether they should exist.”

Gilbert is confident that VanEck’s ETH staking ETF using Lido will launch by mid-2026 if approved and government hurdles are cleared. Unlike partial staking designs, VanEck’s product is expected to be fully staked from day one.

Beyond ETFs, Gilbert believes infrastructure is a bigger story. Lido v3, the latest version of the protocol, is designed to serve institutional needs, allowing them to choose node operators, custodians, and decide when or whether to create stETH. “This optionality is very important. Institutions want control, customization, and flexibility regarding liquidity and exit.”

Native staking vaults are also a key part. Ether can be staked directly within a vault, with options to mint and sell liquid staking tokens if needed. This approach appeals to data allocators and cost-sensitive entities because of lower fees and streamlined processes, especially in the US, where tax treatment of liquid staking tokens is still being defined.

Diversification is fundamental. Lido distributes stake across about 800 node operators, unlike centralized exchanges where staking can be concentrated in a single operator. If a major operator goes offline, the impact can be significant. Diversification is not just “nice-to-have” but a risk management requirement.

Despite ETH price volatility, institutional confidence remains strong. Net staking flows through Lido are increasing, indicating long-term ETH commitment rather than short-term trading. “They think in terms of years, not months.”

This long-term mindset is the clearest signal of staking’s direction. By 2026, Gilbert expects staking, especially full liquidity staking, to no longer be experimental but to become the standard.

“Native staking is not designed for liquidity. Now, institutions holding staked ETH are not withdrawing. This shows where the market is heading.”

“Looking ahead to 2026, I expect fully staked ETH ETF products to become the norm rather than the exception,” Gilbert emphasized. “As spot ETH ETFs mature, platforms and allocators will ask why the product holds idle ETH instead of reflecting the staking mechanism accurately. Essentially, the fully staked structure more precisely describes how staking operates on Ethereum.”

Shach Sanh