Following the recent approval of Ethereum Exchange-Traded Funds (ETFs), Peter Brandt has raised concerns about the risks associated with staking in the cryptocurrency space, particularly focusing on Ethereum (ETH) and Solana (SOL).

In a tweet, Brandt expressed a cautionary opinion on staking, likening it to leveraging and warning investors about the significant risks involved, including potential losses and even bankruptcy. He highlighted the staking process where investors lend out ETH or SOL at an interest rate, drawing parallels to fully leveraged trading practices.

Brandt emphasized the regulatory scrutiny that staking could attract, citing the strict measures already in place for central banks and government treasuries. He cast doubt on the profitability of staking, drawing comparisons to past scams like the Ponzi scheme where promised high returns often turned out to be fraudulent.

Despite Brandt's reservations, platforms like Robinhood are gearing up to embrace these developments, with intentions to list the Ethereum ETF and introduce Solana-staking products for European users.