Fully Staked Ether Products Are Shaping Institutional Crypto Investing in 2026

Staking is no longer a peripheral feature for ether (ETH) investors. By 2026, it has become a core component of how institutions gain exposure to Ethereum, influencing product structure, yield generation, and risk management across the crypto market. As staking withdrawals now function smoothly, ether behaves less like a locked asset and more like a flexible, yield-bearing investment that can be adjusted as market sentiment shifts.

According to Kean Gilbert, head of institutional relations at the Lido Ecosystem Foundation, the past year marked a turning point for institutional adoption of staked ether. A key milestone came when WisdomTree launched a fully staked ether exchange-traded product (ETP) in Europe using Lido’s stETH, listing it on major venues such as SIX, Euronext, and Xetra. The product’s fully staked design signals a broader industry shift, as institutions increasingly expect Ethereum investment products to capture staking rewards rather than leave assets idle.

Many existing ETH ETFs and ETPs still keep portions of ether unstaked to manage liquidity and redemptions. However, this approach reduces returns. With Ethereum staking yields near 3%, partially staked products effectively sacrifice yield. Gilbert argues that fully staked structures, supported by liquid staking tokens like stETH, can still meet T+1 or T+2 redemption requirements without compromising returns.

Europe has demonstrated that this model works, and attention is now turning to the U.S. Regulatory scrutiny remains, particularly around staking services, but the tone is gradually shifting. Gilbert expects regulators to focus more on product structure than on whether staked ETFs should exist at all. He anticipates that fully staked ether ETFs in the U.S., potentially including a VanEck product using Lido, could launch as early as mid-2026.

Beyond ETFs, infrastructure innovations such as Lido v3 and native staking vaults are catering to institutional demand for customization, control, and cost efficiency. Diversification also remains critical, with Lido distributing stake across hundreds of node operators to reduce operational risk.

Despite ether’s price volatility, institutional conviction appears strong. Rising net staking inflows suggest long-term commitment, reinforcing the view that by 2026, fully staked ether exposure will be the standard, not the exception, for institutional Ethereum investing.