The SEC has received Cboe BZX's proposal for staking Ethereum in 21Shares ETF, potentially marking the first such case in the USA.
Ethereum ETF Staking Proposal
On February 20, the SEC acknowledged the receipt of a filing from Cboe BZX aimed at offering Ethereum staking within their ETF for 21Shares. Approval would make it the first instance of an Ethereum ETF offering staking in the United States. The proposal envisions generating additional yields through staking for investors, where all staked ether would belong to the trust.
Regulatory Issues and Changes
The SEC has maintained a stringent stance on proof-of-stake assets, previously classifying such staking activities as securities, leading many Ethereum ETF issuers to remove staking from their filings. However, under a new administration, the SEC has taken a more crypto-positive approach, potentially facilitating a clearer legal framework for staking and promoting its adoption among institutional investors seeking higher yields.
Rise of Institutional Interest
Amid growing institutional demand for Ethereum ETFs, ETH ETF ownership rose from 4.8% to 14.5% in Q4 2024 according to recent data. Experts view Ethereum ETF staking as a key catalyst potentially boosting ETH prices. Concurrently, the SEC's review of spot ETF registrations by Bitwise, 21Shares, and Grayscale for Ripple (XRP) may contribute to wider adoption of crypto ETFs.
The rise in institutional interest and regulatory changes could significantly impact the growth of crypto ETFs, including Ethereum and other digital assets, in the upcoming months.
