A recent report from Blockworks Research reveals that nearly 70% of institutional investors holding Ethereum (ETH) are engaged in staking, with over half of them also holding liquid staking tokens (LSTs). The report highlights that reputation, range of networks supported, price, simple onboarding, competitive costs, and expertise and scalability are the key factors considered when choosing a staking provider. Liquidity and security are deemed the most important features for institutional investors, with concerns over exiting large LST positions and withdrawal efficiency in volatile market conditions. Geographic location also plays a role in their choice of staking platform. The rise of third-party staking platforms is attributed to the increasing popularity of LSTs, which have been integrated into various DeFi applications. However, there are concerns about centralizing validation power in a few protocols, as flagged by the majority of respondents. Restaking is also an emerging trend, with investors expressing interest despite concerns over added risks such as slashing and protocol-level vulnerabilities. Overall, the report indicates a favorable outlook for staking ETH among institutional investors.



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