# Size of the Opportunity

Looking at [Bitcoin Rich List](https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html), it’s clear that self-custody is no longer the norm—the majority of BTC now sits with custodians.

<figure><img src="/files/XdHL5pmxT1q5XcKbD7kM" alt=""><figcaption><p>Screenshot taken on Feb 06 2025</p></figcaption></figure>

A self-issued Bitcoin staking index that enables permissionless reward accrual represents one of the biggest market opportunities in crypto—potentially even greater than Bitcoin as a store of value. It allows investors to earn yield while retaining full control over their Bitcoin holdings.&#x20;

There are three major untapped markets that urgently need solo staking:

1. **Institutional Bitcoin Holders** – ETFs, custodians, corporate treasuries, and sovereign entities holding BTC require compliant, non-custodial staking solutions to generate yield without counterparty risk.
2. **Retail & Whales** – Millions of Bitcoin holders lack yield-generating alternatives beyond CEXs or lending platforms.
3. **App Developers** – Builders need programmable Bitcoin to integrate into lending markets, derivatives, stablecoins, and other DeFi applications

## Motif for ETF Issuers

Not restricted by regulations (unlike US), european issuers can stake upto 60% of their AUM through their custodian for altcoin exposure.&#x20;

<table><thead><tr><th width="241">Physical ETPs</th><th width="201">AUM (in $)</th></tr></thead><tbody><tr><td>ETC Physical BTC</td><td>1.26B</td></tr><tr><td>Coinshares BTC ETP</td><td>1.42B</td></tr><tr><td>21 Shares BTC ETP</td><td>876M</td></tr><tr><td>+ others...</td><td></td></tr></tbody></table>

With the rapidly evolving U.S. regulatory landscape, staking could return to Bitcoin ETFs, driving issuers to adopt diverse yield strategies to stay competitive. Permissionless Bitcoin staking will be crucial for attracting users while minimizing counterparty risk.

## Motif for Market Makers

Currently, the only staking ETPs being traded are listed on Xetra, a German ETF exchange. Some notable staking ETPs include:

<table><thead><tr><th width="172">Staking ETPs</th><th width="148">Nov 24 (€ Mil)</th><th>Oct 24 (€ Mil)</th></tr></thead><tbody><tr><td>21 Shares SOL</td><td>111.97</td><td>40.09</td></tr><tr><td>Coinshares SOL</td><td>71.04</td><td>13.27</td></tr><tr><td>21 Shares ETH</td><td>69.43</td><td>19.07</td></tr><tr><td>+ 29 more...</td><td></td><td></td></tr></tbody></table>

Source: [Xetra](https://www.deutsche-boerse-cash-market.com/dbcm-en/instruments-statistics/statistics/etf-etp-statistics/2062!search?state=H4sIAAAAAAAAAFWPQQ-CMAyF_4rpmYNedzTGhMQDBuJ9bkUXB4ttF0II_90FQeHW1_e1fR3AasEzhQZUG73PJl2FRdXaoDCoYUy1I5YLiiAt9tMJF0iFfiCowz4D1xofLZZOkBcotL4vbA2q1p4xg3dE6kEBZEDI0cvNYbfAHEiSx6cUY2eRTaJMZAnNMYqEds4y7cjteuqvZl4zXr-n1u0yoRXS798X9l0gyxtU-3tscsvb0QnZxPivXLXHD7lWmgtVAQAA\&hitsPerPage=10\&pageNum=0)

Staking ETPs have seen a notable increase in trading volume, highlighting growing interest from ETF issuers exploring Bitcoin staking products as an alternative yield source for their customers.&#x20;

Delta neutral hedging against the NAV is the most common trading strategy in ETP secondary markets. Furthermore, projects like [Ethena](https://ethena.fi) use stETH for their USDe minting.&#x20;

## Motif for ETH Stakers

The connection between Ethereum staking and Bitcoin is especially intriguing, as many Ethereum stakers already manage Bitcoin liquidity through their custody solutions.

<figure><img src="/files/9z6LCwb5i35eVPf3HlHK" alt=""><figcaption><p>Coinbase, Binance, Figment, StakeFish, Okx, Mantle and others are all BTC holders too</p></figcaption></figure>

These node operators are already leveraging Bitcoin staking solutions across various L1/L2 ecosystems and actively participating as liquidity providers for Bitcoin LSTs.


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