Why do institutions prefer ETH staking over frequent trading?

From an institutional perspective, frequent trading is not the optimal solution. Slippage, emotional fluctuations, and policy risks can erode returns, whereas ETH staking offers a more predictable cash flow model. BitMine's continued increased investment is precisely based on this risk-reward consideration.

Compared to directly going long on ETH, staking is more like a “cyclical but non-directional” strategy. As long as the network operates and the validator mechanism remains stable, returns can be sustained. This logic is closer to the “basic income assets” in traditional finance, rather than high-risk speculation.

Additionally, staking can strengthen the bond between institutions and the ecosystem. Participating in validation and maintaining network security is itself an investment in long-term value. BitMine’s actions reflect a shift from a “miner’s mindset” to a “network partner mindset.”

The market insight here is that: the investment narrative of ETH is evolving from price speculation to a redefinition of production relationships.