The Cboe BZX Exchange has filed a request with the US Securities and Exchange Commission (SEC) to allow staking for the 21Shares Core Ethereum ETF. This could become the first ETF in the US to incorporate staking rewards for Ethereum.
Historic Rule Change Request
Previous Ethereum ETF approvals excluded staking due to SEC concerns about securities classification. The recent 19b-4 filing by Cboe BZX Exchange aims to change this, paving the way for more crypto ETFs to integrate staking, offering passive income opportunities for investors.
Regulatory Shift Underway?
The SEC has historically taken a strict stance on staking, but with a new administration and changing regulatory perspectives, experts believe staking approvals could become a reality by 2025. SEC Commissioner Hester Peirce recently expressed optimism about upcoming regulatory shifts and has advocated for revisiting past SEC decisions on crypto ETFs.
Potential Market Impact
Enabling staking within an ETF could lead to higher demand for Ethereum from institutional investors, reduced selling pressure since staked ETH remains locked, and increased mainstream adoption as regulated products enter the market. If approved by the SEC, this rule change could trigger a wave of similar filings from ETF providers like BlackRock and Fidelity.
The rule change request from Cboe BZX Exchange could significantly impact the US crypto ETF market by opening the door for staking integration and attracting new investors to the sector. Ethereum's future as a component of the traditional financial market may become more appealing through such innovations.
