I’m thinking 1st order effects of the ETH ETF is: if the underlying assets aren’t staked, institutions will eventually want to seek the organic “risk-free” yield, barring regulatory uncertainty. 

If the above is true, what’s the 2nd order effects? Does money flow into liquid LST products? Do institutions stake eth themselves (asset managers not hedge funds) because they want to minimise counterparty risks.

I remember reading something about coinbase being the custodian for 90% of the bitcoin etfs. Would imagine ETH etf following a similar pattern. so a lot of the LST activity might be in centralized LSTs.