Ethereum
Ether ETF (ETH) listing approval sees billions invested in takeover protocol Ether.Fi
Replenishment protocol Ether.fi has reached record levels in terms of deposits and total value locked (TVL) as investors anticipate the approval of a one-time ether (ETH) exchange-traded funds (ETFs) in the United States
Over 270,000 Ether ($995 million) has been deposited on Ether.fi in the last ten days. The inflows, coupled with the recent rise in the price of ether, prompted the protocol with TVL to grow from $4 billion to $5.4 billion, an all-time high according to ChallengeLlama.
Restaking is a strategy used by traders to obtain additional yield on ether already staked on the Ethereum blockchain. Ether.fi currently offers an annual yield of 3.48%, with an additional 15.1% available through the product’s liquid vault.
The increase in activity could suggest that investors are looking to gain exposure to the Ethereum ecosystem while betting on the possibility of incorporating staking into ETF products in the future.
Ether.fi CEO Mike Silagadze told CoinDesk that it would be a “matter of time” before Ether ETFs begin implementing staking and re-staking to generate a return for shareholders.
“I think it’s questionable whether staking, especially liquid staking, turns ETH into security,” Silagadze said. “I think what’s going to start is you’ll have ETH ETFs that will be outsourced or run their own infrastructure, these nodes will be compliant and censored and everything else, but they’ll have good built-in yield. is much more complex, so I think it will get there;
Silagadze added that the SEC’s approval will help change the narrative as more people become aware of Ethereum and smart contracts.
“It’s just a greater awareness,” Silagadze said. “A lot of savvy people know what restocking is; they just don’t have a way to access it or allocate to that asset. So I think it helps with the narrative shift as more people become aware of it. what is Ethereum.”
The native token of Ether.fi (ETHFI) also saw a boost this week from recent capital inflows, rising 41% to outperform CoinDesk CD20 Index which only increased by 5.2% during the same period.