In this month’s newsletter:

• What the ETH ETF Approval means for Staking
• Restaking - Room to Grow but at Higher Risks
• Ethereum vs. Solana - the great debate

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What the ETH ETF Approval means for Staking

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As reported by Unchained, the SEC's likely exclusion of staking from ETH ETFs means ETF investors will miss out on staking rewards. 

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• This setup transfers value to those who stake their ETH via protocol inflation, indirectly enhancing their rewards. 
• Institutions that offer products that incorporate staking rewards could gain a competitive edge over ETFs. 
• ETPs with staking as a key selling point already exist in other jurisdictions.

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Ultimately, if successful, an ETH ETF will be a positive tailwind, and set the stage for further institutional participation - with or without staking.
Read our blog article for more details! 

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Restaking - Room to Grow but at Higher Risks

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With the initial excitement about the EigenLayer Mainnet launch and the introduction of the $EIGEN token subsiding a little, it is a good time to zoom out: About 27% of all 120m $ETH is staked, and only 4% is restaked. So there is definitely room to grow, as restaking matures and EigenLayer competitors will launch. However, we do expect complexity and risks to remain significantly higher than staking and liquid staking. But as normal staking gets more and more commoditised, the additional rewards can make a difference!

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We’ll keep you posted and welcome your questions - just reply to this email!

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Ethereum vs. Solana - the great debate

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The fantastic 2 hour Bankless podcast between Justin Drake (Researcher at Ethereum Foundation) and Anatoly Yakovenko (Co-Founder of Solana Labs) contained a lot of controversy: It’s a great chance to hear different takes on the importance of MEV, if economic security is just a meme, and the respective advantages of monolithic vs modular blockchain architectures.

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Personally, I highly appreciated being challenged against some fundamental beliefs of my Ethereum-centric mindset. While I am unsure about the “endgame” technologically, I would advise everyone to use the opportunity to question one’s beliefs and importantly also include the different approaches and culture/characters of various ecosystems.

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Blockdaemon Resources

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• Blog: Ethereum Staking with Blockdaemon
• Staking API Docs: Integration & Reporting
• ETH staking in Blockdaemon Institutional Wallet™
• Keynote: The Rise of the Sovereign L2s

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Previous Ethereum Newsletters 

• May 2024 - Why Stake $ETH While Rewards Trend Down?
• April 2024 - Restaking & Dencun Launched Successfully 
• March 2024 - Institutional L2s & restaking partnering

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