Cboe BZX Exchange Pursues SEC Approval to Introduce Staking for 21Shares Core Ethereum ETF
The Cboe BZX Exchange has officially submitted a request to the SEC for approval to implement staking for the 21Shares Core Ethereum exchange-traded fund (ETF). This marks a significant milestone as it would be the first time a U.S. ETF has proposed staking functionalities. If granted, this initiative would enable investors to earn rewards by staking their ether, an option currently unavailable within Ethereum ETFs.
Staking involves locking up ETH to enhance the security of the Ethereum network while generating passive income. This move could present new avenues for investors to achieve additional earnings compared to merely holding ETH ETFs. Cboe BZX plans to adopt a “point-and-click” method for staking, which ensures that the ETH remains in place, thereby reducing the potential risk of theft during the staking process.
Although the 21Shares Core Ethereum ETF received certification last year, it did not permit staking at that time. The SEC has traditionally been cautious regarding staking in ETFs due to concerns over compliance with securities laws. However, recent leadership changes within the SEC have sparked renewed confidence among investors that the regulator may finally be open to considering staking in ETF products.
Prominent SEC Commissioner Hester Peirce has been a proponent of regulatory reforms that would facilitate the inclusion of staking in Ethereum ETFs. ETF analysts express optimism surrounding this filing, recognizing its potential for approval despite existing uncertainties in regulatory decisions.
Following the news, Ethereum’s price surged nearly 6%. The SEC has a 240-day window to respond to this request. If the proposal is approved, it could significantly boost investment in Ethereum ETFs and reinforce Ethereum’s position as a long-term investment asset.
