- The U.S. SEC has acknowledged 21Shares request to enable staking for its Ethereum ETF.
- This marks the first time the SEC has received a request for Ethereum ETF staking approval.
The U.S. Securities and Exchange Commission (SEC) has officially acknowledged a 19b-4 filing submitted by Cboe, which seeks approval for staking in the 21Shares Core Ethereum ETF.
Significantly, the Bloomberg ETF analyst James Seyffart recently stated that this is the first ETF to file with the SEC specifically requesting Ethereum staking permission. If approved, this would be the first time a U.S.-listed Ethereum ETF offers staking. It might attract more retail and institutional investors.
Regulatory Challenges and SEC’s Stance
The Securities and Exchange Commission has had a strict policy concerning proof-of-stake (PoS) assets. Under former Chair Gary Gensler, the SEC classified staking-related activities as securities, which led to many Ethereum ETF issuers removing staking from their registration statements.
Moreover, the SEC approved spot Ethereum ETF last year and has demonstrated an open stance toward crypto under the Trump administration. There have been recent reports that the SEC has established a crypto task force to review token designations, including some with possible designation as non-securities.
Contrarily, institutional interest in Ethereum ETF has been growing. In the fourth quarter of 2024, institutional ownership of Ethereum ETFs surged from 4.8% to 14.5%. This data highlights the growing interest in Ethereum exposure among institutional investors. It could be further amplified if staking is permitted.
In addition, staking enables investors to receive rewards on their Ethereum holdings, further increasing the attractiveness of ETFs as a means of exposure to cryptocurrency. Rising demand and diminishing liquid supply might bring about future price appreciation in Ethereum.
Price action of Ethereum
The largest altcoin, Ethereum (ETH) has been stuck in a consolidation phase, failing to gain traction. ETH price is supported above the $2,680 level and began a mild upside correction. The altcoin has broken the $2,730 resistance.
At the time of writing, Ethereum was traded at $2,739 after a 2.25% spike. The daily ETH trading volume has fallen by over 34% to $15.24 billion. Further, the Ethereum Fear and Greed Index reading is sitting at 46, showing a neutral sentiment in the market.
Highlighted Crypto News
