Updated for Q1 2025: Kaiko Spot Exchange Ranking
Welcome to the index in focus!
Welcome to the Index in Focus! In this week’s report, we examine the role of staking indices in financial products, explore their mechanics, and assess the potential size of the global market.
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How the lack of staking impacted ETH ETFs ?
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The requirements for introducing ETFs with staking features.
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The traditional equivalents of these products.
Introduction
Crypto-native investors have viewed ETH ETFs as disappointing compared to BTC ETFs. However, BlackRock’s ETHA fund ranked among the top six ETF launches of 2024, attracting over $3.5 billion in inflows. The lukewarm reception from the crypto community is largely due to the limited functionality of these Ether ETFs, which launched without staking rewards.
This is likely to change in 2025, potentially catalyzing renewed interest in ETH and other proof-of-stake assets—some of which offer even greater yields to investors.
How significant is the staking opportunity for financial products? Currently, over 34 million ETH are staked on the Beacon Chain. At today’s prices, the Ethereum staking market alone is valued at more than $50 billion—for context, that’s twice the market capitalization of DOGE.
However, it’s not just the size of the market that matters. For most investors, staking involves significant friction and complexity. For example, Ethereum requires solo stakers to hold 32 ETH to participate—an investment of approximately $50,000, which is out of reach for many. By incorporating staking into indices and financial products, the benefits of staking can be made accessible to a broader range of investors, while also enhancing network security.
Read our full report below to find out more about Kaiko Indices factors yields into index products to power the future of digital assets financial products.