# Blockdaemon Ethereum Newsletter

**June 2024**  
By:  
Freddy Zwanzger

This month's newsletter explores what the Ethereum ETF means for staking, why EigenLayer has room to grow but at higher risks, and a recent Ethereum vs. Solana debate hosted by Bankless.

**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

### What the ETH ETF Approval means for Staking

As reported by [Unchained](https://unchainedcrypto.com/why-eth-spot-etfs-could-benefit-stakers-and-make-ethereum-more-resilient/), the SEC's likely exclusion of staking from ETH ETFs means ETF investors will miss out on staking rewards.

- 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](https://www.21shares.com/en-eu/product/stake) in other jurisdictions.

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!

Image Source: [Blockdaemon Blog](/content/blog/a-recap-of-the-ethereum-etf-approval/index.html)

### Restaking - Room to Grow but at Higher Risks

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](https://www.eigenlayer.xyz/) [competitors](https://medium.com/@nektarnetwork/why-nektar-network-is-your-restaking-endgame-a-competitive-analysis-with-eigen-layer-and-karak-a6f0319905e2) [will launch](https://symbiotic.fi/). 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!

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

Image Source: [Blockdaemon presentation](/content/blog/restaking-workshop-recap---consensus-2024/index.html) given at Consensus

### Ethereum vs. Solana - the great debate

The fantastic [2 hour Bankless podcast](https://x.com/BanklessHQ/status/1797618795634098305) between [Justin Drake](https://x.com/drakefjustin) (Researcher at Ethereum Foundation) and [Anatoly Yakovenko](https://x.com/aeyakovenko) (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.

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.

Image Source: [Bankless on X](https://x.com/BanklessHQ/status/1797618795634098305)