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coinpedia 2025-02-13 03:49:21

Crypto News: Cboe BZX Files First-Ever SEC Request to Allow Staking for 21Shares’ Ethereum ETF

The post Crypto News: Cboe BZX Files First-Ever SEC Request to Allow Staking for 21Shares’ Ethereum ETF appeared first on Coinpedia Fintech News The Cboe BZX Exchange has recently submitted a proposed rule change to the U.S. Securities and Exchange Commission (SEC) to allow staking for the 21Shares Core Ethereum ETF. This request, filed through a Form 19b-4, aims to enable staking for the Ethereum held by the ETF trust. If approved, it would become the first ETF in the U.S. to incorporate staking. The SEC has previously approved several Ethereum ETFs, such as the 21Shares Ethereum ETF, alongside other high-profile offerings from firms like BlackRock and Fidelity. However, most of these approvals excluded staking due to regulatory concerns. The filing said, “Based on discussions with the Sponsor, the Exchanges proposes to amend several portions of the Eth ETP Amendment No. 2, as amended, in order to allow the staking of the Ethereum held by the Trust.” What Does This Mean for Ethereum? Staking is an important feature for Ethereum, as it allows holders to earn passive rewards for helping secure the network. However, staking hasn’t been part of the Ethereum ETF offerings so far, as the SEC had previously raised concerns about whether staking could be considered a security. This was part of broader regulatory uncertainty surrounding cryptocurrencies, which saw SEC Chairman Gary Gensler labeling various crypto-related activities, including staking and stablecoins, as potential securities. However, this approach is now shifting, and many expect that the SEC will greenlight staking in 2025. This rule change request could pave the way for more crypto-related ETFs to incorporate staking, creating new opportunities for investors to earn rewards on their holdings. As a result, Ethereum ETFs could attract capital, as passive staking rewards become a compelling benefit for investors. The ETF Race Heats Up The SEC’s approval of the 21Shares Core Ethereum ETF with staking could set a precedent, with other crypto firms looking to follow suit. The Cboe BZX Exchange has been very active in the ETF space, having also filed proposals for other assets like XRP.

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