Trump-Linked Crypto Platform Stakes $33M in Ether, Raising Staking ETF Expectations
A bold move by World Liberty Financial (WLFI), a decentralized finance (DeFi) platform tied to the Trump family, has revived optimism for staking-enabled ETH ETFs. This week, WLFI staked 10,000 ETH, valued at $33 million, through Lido Finance (LDO), the leading Ethereum staking platform with over $31 billion in assets, according to Arkham Intelligence data.
The transaction follows WLFI’s recent acquisition of $110 million worth of digital assets, including ETH, wrapped bitcoin (wBTC), Tron’s TRX, AAVE, LINK, and Ethena’s ENA, further cementing its position in the crypto market.
WLFI’s actions have sparked hope for regulatory approval of staking-enabled spot ETH ETFs, which would allow investors to earn staking rewards while holding ETF shares. SEC Commissioner Hester Peirce, now heading the agency’s crypto task force, recently expressed her openness to considering staking for ETFs in an interview with Coinage, signaling a potential shift in policy. This marks a notable departure from the approach of former SEC Chair Gary Gensler, who stepped down on January 20, coinciding with Donald Trump’s inauguration.
Staking ETFs could reinvigorate interest in ETH-based investment products, offering a steady yield and boosting their appeal to institutional investors. Combined, U.S.-listed spot ETH ETFs currently hold $12 billion in assets, according to SoSoValue.
The development comes at a critical time for Ethereum, which has faced challenges in recent months. ETH recently dropped to a 4-year low against Bitcoin (BTC) and has been losing market share to faster-growing blockchains like Solana. Concerns about Ethereum’s leadership and development roadmap have further dampened investor confidence.
Analysts and traders remain cautiously optimistic. “Sentiment around ETH will change rapidly once staking ETFs gain approval,” noted crypto trader Pentoshi. “While I don’t see ETH as a long-term hold, the hype around these products will drive a strong, short-term rally.”
Alex Krüger, partner at Asgard Markets, also predicted significant gains for ETH linked to ETF developments. “Expect ETH to see a multi-week rally in 2025 when staking ETFs are announced,” Krüger wrote on X. “That’s when heavily exposed positions should rotate into better-performing assets.”
With WLFI’s staking initiative and growing expectations of regulatory approval, Ethereum could be on the brink of a resurgence, potentially driving significant price gains and renewed interest in its ecosystem.
