Cboe BZX Exchange has filed a rule change request with the SEC to allow staking for the 21Shares Core Ethereum ETF. This could be the first ETF in the country to incorporate staking rewards for Ethereum.
First-Ever Ethereum ETF with Staking
Previous Ethereum ETF approvals excluded staking due to SEC concerns about whether such activities could classify as securities. However, the recent 19b-4 filing by Cboe BZX Exchange aims to change that. If approved, it could pave 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, with former Chairman Gary Gensler suggesting that proof-of-stake tokens resemble securities. However, with new administration and changing regulatory perspectives, many industry experts believe staking approvals could become a reality by 2025. SEC Commissioner Hester Peirce recently expressed optimism about upcoming regulatory shifts.
Potential Market Impact
Introducing staking into ETFs could lead to higher demand for Ethereum, reduced selling pressure, and increased mainstream adoption as regulated staking products enter the market. If the SEC approves this rule change, it could trigger a wave of similar filings from other ETF providers like BlackRock and Fidelity.
The rule change filing by Cboe BZX Exchange could mark a new era for crypto-backed ETFs. If approved by the SEC, it will strengthen Ethereum's position in traditional finance and make it more attractive to institutional investors.
