CoinDesk
Ethereum staking is shifting from a yield-grab for crypto natives into a balance sheet line item that institutional allocators can underwrite, according to Will Shannon, head of node operator mechanisms at Lido. The shift is being driven by the Ethereum network's roadmap, which is making staking infrastructure institutional-grade ahead of the Glamsterdam hard fork expected in the second half of 2026, and by a measurable change in how staking rewards are composed.
Why it matters
Shannon frames the distinction as the difference between an ETH treasury company and a Bitcoin treasury company. MicroStrategy-style holders sit on a static balance sheet; an ETH treasury company can put its holdings to work through staking and earn yield, turning the same balance sheet into a productive asset. For institutional buyers underwriting long-term Ethereum exposure, that changes the asset's character: staking is what makes the holding productive, not just directional.
The infrastructure is also catching up. Glamsterdam's enshrined proposer-builder separation (ePBS) lowers the trust assumptions baked into how blocks are produced and routed, giving large allocations a more standardized, transparent path into validator operations. Stated decentralization goals for the roadmap strengthen the censorship-resistance story institutions underwrite when they hold and stake ETH.
Market impact
The reward composition is shifting in ways that matter for forecasting. Protocol rewards now make up a larger share of validator income than MEV, and the gap is widening. Protocol rewards are tied directly to network issuance and are predictable; MEV income has become more variable as the block-construction market matures. That mix shift makes staking returns more stable and forecastable, the input institutional models need.
The SEC is separately pushing a proposal to overhaul crypto custody rules for registered investment advisors, a parallel track that would change how advisors custody client ETH in the first place.
Frequently asked questions
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What is the Glamsterdam hard fork, and why does it matters for ETH staking?
Glamsterdam is the next major Ethereum hard fork, expected in the second half of 2026. It ships enshrined proposer-builder separation (ePBS), which lowers trust assumptions on block production and gives institutional allocations a more standardized path into validator operations.
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How does liquid staking differ from native ETH staking?
Native staking locks ETH for the staking period and earns protocol rewards but removes liquidity. Liquid staking issues a token representing the staked position, letting the client trade or otherwise use that value while it continues earning.
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Why is the ETH staking reward mix shifting from MEV to protocol rewards?
Protocol rewards, the base rewards validators earn for proposing and validating blocks, now make up a larger share of validator income than MEV. Protocol rewards are predictable and tied to issuance, while MEV has become more variable, making returns more forecastable.
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What is enshrined proposer-builder separation (ePBS)?
ePBS is part of the Glamsterdam upgrade. It reduces the trust assumptions baked into how block production depends on off-chain intermediaries, making the staking infrastructure more institutional-grade and easier for providers to plug into.
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What did the SEC propose for crypto custody rules for RIAs?
The SEC submitted a proposal to overhaul crypto custody rules for registered investment advisors, clarifying how firms must safeguard client digital assets. It sits alongside the infrastructure work and would shape how advisors hold and stake ETH on behalf of clients.
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