Staking becomes widely adopted: how ether investors might experience 2026

The Evolution of Ether Staking in 2026

By 2026, staking has become a central strategy for institutional ether (ETH) investors, fundamentally influencing how products are structured, how returns are generated, and how risks are managed throughout the crypto market.

While staking helps limit immediate selling pressure, it no longer locks up coins indefinitely. With withdrawal processes now seamless, ether behaves more like a flexible, yield-generating asset—allowing investors to adjust their positions as market sentiment shifts.

Institutional Adoption and Product Innovation

Kean Gilbert, who leads institutional relations at the Lido Ecosystem Foundation, highlights that the previous year was pivotal for institutional adoption of staked ether (stETH). A major milestone occurred in December when WisdomTree introduced a staked ether exchange-traded product (ETP) utilizing Lido’s stETH, which is now available on leading European exchanges such as SIX, Euronext, and Xetra. This product is entirely staked, a move Gilbert believes sets a new industry standard.

Gilbert recalls that the process to launch this fully staked product was rigorous, involving over 450 due diligence questions from the issuer. “Operating a product that is fully staked is complex, but it’s quickly becoming the benchmark that institutional investors expect,” he notes.

Staking Strategies and Yield Optimization

Many current ether ETFs and ETPs retain a portion of ETH unstaked to maintain liquidity for redemptions, but Gilbert argues this approach reduces potential returns. With staking yields around 3%, products that only stake half their ETH are missing out on significant rewards.

• “If only half of an ETF’s ETH is staked, investors receive just half the possible yield,” Gilbert explains.
• “Staking the full amount while still meeting redemption timelines offers superior economics.”

European markets have already demonstrated the viability of fully staked products using liquid staking tokens like stETH, which can provide liquidity for redemptions without sacrificing yield. Gilbert anticipates that the U.S. will adopt similar models.

“The success of products like WisdomTree’s stETH ETP in Europe signals the direction institutional ETH offerings are heading,” he says. “Fully staked structures supported by stETH minimize the need for large unstaked reserves, since liquidity is readily available. With approximately $100 million in stETH liquidity accessible within 2% of ETH’s redemption value, issuers can keep products fully staked and maintain investor rewards.”

Regulatory Landscape and the U.S. Market

Staking has become a primary method for crypto holders to earn yield, but in the United States, it faces increasing regulatory attention. U.S. authorities, particularly the Securities and Exchange Commission (SEC), are drawing clearer distinctions between protocol-level staking and staking services that resemble investment products—a debate that is shaping the next generation of crypto ETFs.

“U.S. regulators are closely monitoring developments in Europe,” Gilbert observes. “Leading up to the WisdomTree launch, the regulatory environment in the U.S. has grown more receptive to staking. I expect the focus will shift from whether staked ETFs should exist to how they are structured.”

This regulatory evolution could become more pronounced as soon as 2026. Gilbert is optimistic that a VanEck staked ether ETF using Lido will launch, possibly by mid-summer, pending regulatory approval and resolution of recent government delays. Unlike partial-stake models, the VanEck ETF is expected to be fully staked from inception.

Infrastructure and Customization for Institutions

Gilbert believes that beyond ETFs, infrastructure advancements are even more significant. Lido v3, the latest version of the protocol, is tailored to institutional requirements, allowing allocators to select their own node operators and custodians, and to decide when—or if—to mint stETH. “This level of choice is essential,” Gilbert explains. “Institutions demand control, customization, and flexibility regarding liquidity and exit strategies.”

Native staking vaults add another layer of flexibility, enabling ether to be staked directly within a vault, with the option to mint and trade a liquid staking token later if liquidity becomes necessary.

According to Gilbert, this model is especially appealing to data-driven and cost-conscious allocators, as it offers lower fees and a more streamlined process—an important consideration in the U.S., where the tax treatment of liquid staking tokens is still evolving.

Diversification and Risk Management

Diversification is at the core of these developments. Lido operates as middleware, distributing stakes across roughly 800 node operators, in contrast to centralized exchanges that may concentrate staking with a single provider. “If a major operator experiences downtime, the consequences can be severe,” Gilbert warns. “Diversification isn’t optional—it’s a necessity for managing risk.”

Long-Term Commitment and the Future of Staking

Despite ether’s volatile price movements, institutional confidence remains strong. Net staking inflows through Lido are increasing, indicating that investors are committing ETH for the long haul rather than making short-term trades. “Their perspective is measured in years, not months,” Gilbert notes.

This long-term approach may be the clearest indicator of staking’s future. By 2026, Gilbert expects that staking—especially fully deployed, liquid staking—will become the norm rather than an experiment.

“Native staking wasn’t originally designed for liquidity,” he says. “Now, institutions are staking ETH and holding their positions, which speaks volumes about the market’s direction.”

Looking ahead, Gilbert predicts that fully staked exposure will become the standard for ETH ETFs, not the exception. “As spot ETH ETFs mature, both platforms and allocators will increasingly question why any product would hold idle ETH instead of maximizing staking returns. Fully staked structures more accurately reflect how staking operates within Ethereum,” he concludes.