Cboe BZX Exchange has submitted a rule change request to the SEC, proposing the inclusion of staking for Ethereum ETF.
Potential Changes in ETFs
Cboe BZX Exchange proposed to include staking in the 21Shares Core Ethereum ETF through a rule change request. This could mark the first ETF in the U.S. to offer staking rewards for Ethereum. Previous Ethereum ETF approvals excluded staking due to SEC concerns about staking activities being classified as securities.
Regulatory Shift
The SEC has historically taken a strict stance on staking, with former Chairman Gary Gensler suggesting that proof-of-stake tokens resemble securities. However, with changing leadership and regulatory perspectives, experts believe staking approvals could become a reality by 2025. SEC Commissioner Hester Peirce expressed optimism about regulatory shifts and advocated for revisiting past SEC decisions on crypto ETFs, including staking.
Future of Staking in ETFs
If approved, staking in ETFs could increase demand for Ethereum as institutions seek yield-generating assets. This could reduce selling pressure since ETH tokens remain locked. Strengthening Ethereum's position in traditional finance would make it attractive to institutional investors. The SEC will review the rule change request before making a decision.
If the SEC approves the changes, it could trigger similar filings from other ETF providers, strengthening Ethereum's position in the financial sector.
