Ether Unstaking Can Take Weeks, Limiting Institutional Stakes

Kean Gilbert, head of institutional relations at Lido Ecosystem Foundation, said funds face a timing mismatch: redemptions may be due within one or two days, while unstaking Ether (ETH) on Ethereum can take weeks. Funds therefore keep some holdings outside staking, he said.

Ethereum’s staked balance reached 43.8 million ETH at the end of the third quarter, equal to 35.9% of supply. Net staking inflows totaled 1.99 million ETH for the quarter, extending the network’s streak to six consecutive quarters. TokenPost has covered the quarter’s staking and yield figures.

Average annualized staking yield declined to 2.63% in Q3 from 2.81% in Q2. New ETH issuance accounted for 96.3% of the reported Q3 yield. The figures exclude service-provider fees and do not represent the yield clients actually received.

Gilbert estimated that European products tied to staking have an average staking share of 50% to 60%. He said institutional implementation discussions include validator distribution, code audits and what portion of a fund’s holdings to stake.

Liquid staking tokens can offer another exit route, Gilbert said, but selling them still depends on market liquidity and price.