SEC Shift Triggers Surge in Demand for Direct Ethereum Staking
The SEC's recent shift in stance on blockchain staking activities has significant implications for Ethereum investors. In May, the Division of Corporation Finance stated that certain activities do not involve the offering of securities. This change follows a request from Solana ETF issuers for S-1 filings and a commitment to a 30-day review period.
US Ethereum ETFs currently provide only spot exposure, but the potential inclusion of staking rewards creates a distinction from Bitcoin products. However, ETF investors face lower net yields due to the need to hold liquid reserves to handle Ethereum's nine to fifty day unbonding period. Net yields for ETF investors range from 1.9 to 2.2 percent, compared to direct staking yield of around 2.68 percent.
Figment is a non-custodial infrastructure provider that operates a significant share of staked ETH. In the first quarter of 2026, Figment validators maintained a 99.9 percent participation rate, beating the network average of 99.7 percent. Figment's infrastructure uses a 'Safety Over Liveness' philosophy to minimize slashing risk, with zero double-sign slashing events recorded in Q1 2026.
To participate in solo staking, users must deposit 32 ETH to activate a single validator. The Pectra upgrade activated in May 2025 increased the maximum validator effective balance cap from 32 ETH to 2,048 ETH, allowing for better economies of scale for large asset managers. Figment's fees consist of a 10% charge, which applies to 30% of Execution Layer rewards while Consensus Layer rewards remain free.