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News

Ethereum ETF Staking Still Has Hope Could Be Launched

July 25, 2024 - Around 2 mins mins to read

Key Points:

  • The new ETFs do not include staking income due to SEC concerns about potential violations of federal securities laws.
  • Ethereum ETF staking’s inclusion may depend on future regulatory and political changes.
Accodring to CoinDesk, some issuers, including BlackRock, did not provide staking capabilities in their ETF products, likely at the urging of the U.S. Securities and Exchange Commission.
Ethereum ETF Staking Still Has Hope Could Be Launched

Read more: Ethereum ETF Trading Exceeds $1 Billion in Volume on the First Day

SEC Excludes Staking Income from New ETFs

The agency expressed concerns that staking may have violated federal securities laws related to the offering of an unregistered security.

Even in light of this news, hopes remain high. BlackRock’s head of digital assets, Rob Mitchnick, commented that Ethereum ETF staking isn’t actively being considered at the moment, but there were hopes that regulatory changes would happen to one day pave the way for its inclusion.

BlackRock, Fidelity, and Franklin Templeton are three financial giants who have shown interest in implementing staking capabilities. According to Fidelity’s Cynthia Lo Bessette, it plays an important role in securing the Ethereum ecosystem.

Future of Ethereum ETF Staking Hangs on Regulatory and Political Changes

The future of Ethereum ETF staking is also drenched in political factors. According to Nate Geraci, the president of the ETF Store, a possible Trump Administration would fast-track its approval for staking following up on that very crypto-friendly stance earlier taken. Otherwise, ETF issuers could be in a limbo situation while waiting for clearer regulatory frameworks.

For now, Franklin Templeton and others have opted for simpler, unstaked versions of their ETFs that carry less execution risk and a much clearer path to approval. Should regulators one day change their tune, asset managers like Franklin’s David Mann are ready to revamp their products.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.