Ethereum Staking: 2024 Liquid Staking Token Investment Thesis

Frequently Asked Questions

01.What is a liquid staking token?

A liquid staking token is a transferable receipt token issued when a holder stakes ETH through a liquid staking protocol such as Lido or Rocket Pool. The token represents a claim on the underlying staked ETH plus accrued staking rewards, and can be used as collateral or traded on secondary markets while the underlying ETH continues earning validator yield.

02.How did the Shapella upgrade change the LST investment thesis in 2024?

The Shapella upgrade in April 2023 enabled validator withdrawals, removing the lockup risk that had made staked ETH structurally illiquid. After Shapella, staked ETH became a genuinely fungible income-generating asset, which materially de-risked the LST category and enabled institutional allocation models that previously could not accept indefinite illiquidity.

03.Which institutions are allocating to liquid staking in early 2024?

Early institutional adopters in 2024 include crypto-native asset managers, family offices with digital asset allocations, and treasury operators of Ethereum-aligned DAOs. Traditional asset managers remain blocked by custody and regulatory clarity gaps in most jurisdictions, with Coinbase Custody and Anchorage Digital being the most cited qualified custodians for staked ETH exposure.