New Node Certification Targets Institutional Ethereum Staking Growth

Node Certification Aims to Boost Institutional Ether Staking

A group of leading crypto companies, including Coinbase and Blockdaemon, have launched a new certification system for Ethereum node operators called the Node Operator Risk Standard (NORS). This initiative is designed to encourage more institutional investors to participate in Ether (ETH) staking by providing a clear set of risk management criteria that node operators must meet.

The consortium behind NORS includes notable names such as Alluvial, Chainproof, DV Labs, Eigen Labs, Figment, Galaxy, and Nexus Mutual. The certification process will require node operators to undergo a rigorous evaluation by independent auditors.

These auditors will assess the operators across six categories in a risk control matrix (RCM), ensuring that they meet the standards expected by large financial institutions. Evan Weiss, Chief Operating Officer of Alluvial, noted that establishing security standards that align with institutional expectations is essential for easing the onboarding process and fostering wider adoption of blockchain technology.

Node operators must demonstrate that they have addressed several key risk factors to qualify for NORS certification. Such factors include slashing, disaster recovery and business continuity, change control, entity-level control, infrastructure management, and private key management. The accreditation will boost institutional investor confidence, reducing their hesitance to stake Ether.

Institutional Hesitation in Ethereum Staking Addressed by NORS

Despite the launch of spot Ether exchange-traded funds (ETFs) in the United States earlier this year, staking was noticeably absent from the funds’ proposals. However, the amount of staked Ether has continued to grow, with over 6 million additional Ether staked in 2024 alone, according to data from the Beacon Chain.

Lachlan Feeney, founder and CEO of Ethereum infrastructure firm Labrys, commented that institutional interest in Ether staking may still lag because other assets offer higher returns with lower risks. He pointed out that Coinbase’s current Ether staking yield of 2.06% is lower than the returns on some US Treasury investments, which partly explains why investors seek alternative Ether staking options.

Jaydeep Korde, CEO of Launchnodes, added that many institutions are still struggling to understand the technical aspects of Ethereum staking. He highlighted that navigating the best practices for digital asset custody is a significant challenge for these investors.

Furthermore, the NORS certification aligns with established audit standards, such as those followed by the Big Four accounting firms, and is expected to meet the needs of traditional institutional certifications. This could be a crucial step in making Ether staking more attractive to institutional players.

Ethereum Whales Accumulate as Market Awaits Price Bottom

Meanwhile, Ethereum whales have been buying significant amounts of Ether (ETH) despite the cryptocurrency’s recent sluggish price performance. Data from CryptoQuant indicates that these large holders have accumulated over 200,000 ETH, valued at more than $540 million, within the last four days.

These buying patterns by whales suggest they might be positioning themselves ahead of a potential price bottom. Whale transactions are particularly influential due to the significant capital involved, often leading to noticeable impacts on price trends.

US Spot Ether ETFs Disappointment Continues

Interestingly, this whale activity comes at a time when Ether exchange-traded funds (ETFs) in the United States are seeing substantial net outflows. According to data from Farside Investors, these Ether ETFs have experienced nearly $500 million in net outflows since their launch.

In particular, the Grayscale Ethereum Trust ETF has been hit hard, with outflows totaling $2.5 billion since trading began on July 23. Surprisingly, traditional finance investors’ demand for these ETFs has been weaker than expected. Matteo Greco, a research analyst at Fineqia International, noted that spot ETH ETFs traded a cumulative $830 million last week, showing significantly lower trading activity compared to Bitcoin (BTC) ETFs.

Analysts Predict Ether Price Bottom Near $2,500 Mark

Meanwhile, analysts are divided on whether Ether’s price has reached its bottom. CryptoBullet, a popular market analyst, believes that the bottom could be in as long as Ether remains above the $2,500 mark.

The analyst sees the $2,500 to $2,100 range as strong support, though consolidation around the 0.618 Fibonacci level and the 100-day moving average may be necessary before any significant rally. Meanwhile, Aurelie Barthere, a principal research analyst at Nansen, highlighted the $2,700 level as a key resistance point. He added that until Ether breaks this level with sufficient volume, the market remains uncertain.