Staking Tokens Post Double-Digit Gains on BlackRock Ethereum ETF Hype

The governance token behind Lido Finance has soared more than 20% overnight, per CoinGecko, reaching $2.49 at time of publication. Over the last week, the figure has ballooned even further, hitting 37% since last Friday. Beyond satisfying speculators, LDO also serves as a voting token for the liquid staking protocol Lido Finance. Holders can vote yay or nay on changes to protocol parameters or how Lido should spend its treasury.

Lido Finance is the industry’s largest liquid staking provider, letting users, notably ETH holders, stake their Ethereum. In exchange, they get a “stETH” token which tracks the price of Ethereum and can be used elsewhere in DeFi, keeping users liquid.

RocketPool’s native token, the industry’s second-largest staking provider, is also on a serious rally, rising over 20% in the past 24 hours to its current value of $32.83. Like Lido, it also gives users access to a staked version of Ethereum called “RETH.”

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Staking tokens soar on Ethereum ETF hopes

The price surge for staking tokens appears to be driven by recent news from BlackRock filing a new entity called “iShares Ethereum Trust” in Delaware—suggesting plans for an ETF for the cryptocurrency. The news has propelled Ethereum itself to over $2,000 for the first time since July.

It’s not an official ETF filing for Ethereum, but analysts yesterday pointed out how BlackRock executed a similar move ahead of officially filing for its Bitcoin ETF back in June. The asset manager declined to comment on the matter.

Though it’s joining a long list of ETF hopefuls for both assets, BlackRock’s arrival to the race is notable given its track record for successful application approvals.