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Ethereum staking sees increasing interest in institution in the middle of the ETH underperformance

cryptobizinvest.com June 16, 2025

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Ether has significantly underperformed Bitcoin and other digital market cycle assets, but the growing institutional interest in Ethereum staking is driving demand for careful solutions to support a wider range of investors, according to Kean Gilbert, head of institutional relationships in Lido Ecosystem Fundation.

On May 27, Commainu, a regulated digital asset custody provider, began to offer support for Lido Staked ETH (Steth), which is Ethereum’s largest token, which provides 27% of all staked ether (Eth).

Caution solutions are available for institutional investors in Dubai, the United Arab Emirates, and Jersey, the autonomous self-management of the British Islands territory.

The product provided a following path to accessing Ethereum staking yields at a time as more institutional investors vary in digital property.

“Many asset managers, custodians, family offices and crypto investment companies are actively exploring staking techniques,” Gilbert told cointelegraph in an interview.

At the same time, those who provided funds that the US funding were exchanged for the clarity of regulation in the launch of Ethereum’s ETFs.

Notwithstanding Ether’s underperformance“Institutions find liquid staking tokens such as steth that are useful because they directly define challenges related to capital lock-ups and complex precautions repairs,” Gilbert said.

Tokens such as Steth provide immediate liquidity and compatible with qualified caregivers such as cominers, fireblocks and copper, he said.

*ETH/USD has dropped 24% year-to-date and 36% over the past six months. Source:* *Tradingview*

Careful solutions can boost ETH institution’s adoption, crypto assets

Lido’s Push Toward Institutional Adoption has accelerated in recent months, marked by the Launching lido v3featuring modular smart contracts designed to help institutions meet regulatory compliance requirements.

Gilbert told Cointelegraph that Solutions It is important for some institutions, such as asset managers and family offices, under strict compliance and risk management frameworks.

“Historically, the limited presence of Regulated Custodians or MPC wallet providers who support Steth is a significant obstacle for these institutions,” he said.

This is in contrast to crypto-native companies, which are generally more comfortable managing crypto assets directly and often willing to avoid third-party custody solutions.

Gilbert said staked ether tokens such as Steth are increasingly used by both traditional and crypto-native institutions to obtain exposure to Ethereum rewards without locking capital for a long time.

These tokens also provide the benefits of liquidity through the decentralized finances (DEFI), centralized finances (CEFI), and over-the-counter (OTC) markets.

For these reasons, demand for staked Ethereum has grown significantly. Last week, Cointelegraph reported that the amount of ether staked in the beacon chain reached a new all-time high.