Cboe BZX has filed a rule change request with the SEC to include staking in the 21Shares Core Ethereum ETF, potentially marking a historic shift for the U.S. market.
Cboe BZX's Historic Initiative
The Cboe BZX Exchange has submitted a rule change request to the U.S. Securities and Exchange Commission to allow staking for the 21Shares Core Ethereum ETF. This could be the first ETF in the country to incorporate staking rewards for Ethereum. Previous Ethereum ETF approvals excluded staking due to SEC concerns about the classification of staking activities as securities. If approved, this could pave the way for more crypto ETFs to integrate staking, offering passive income opportunities to investors.
Regulatory Shift in Staking
The SEC has historically maintained a strict stance on staking, with former Chairman Gary Gensler suggesting that proof-of-stake tokens resemble securities. However, under new leadership, there may be a revisiting of past decisions. SEC Commissioner Hester Peirce recently expressed optimism about potential regulatory changes and approval of staking by 2025, which could reignite discussion on ETF-based staking and other innovations.
Market Implications
ETF-based staking 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 by other ETF providers like BlackRock and Fidelity, strengthening Ethereum's position in traditional finance and making it more attractive to institutional investors.
The SEC's decision on the rule change is anticipated to potentially transform the crypto ETF market, raising interest in Ethereum and integrating digital assets more deeply into traditional financial structures.
