Key Points:
- CBOE BZX Exchange filed with the SEC to allow staking in 21Shares Ethereum ETF to generate additional revenue while maintaining liquidity.
- Increased filings for ETFs featuring altcoins like Solana and XRP signal growing institutional interest in diversified crypto investment products.
CBOE BZX Exchange has submitted a proposal on behalf of asset manager 21Shares to incorporate staking into 21Shares Ethereum ETF.
Read more: 21Shares Polkadot Trust Moving Forward With SEC
21Shares Ethereum ETF Filed with SEC to Stake Ether Holdings
The request, detailed in a Feb. 12 filing with the U.S. Securities and Exchange Commission (SEC), seeks permission to stake a portion of the 21Shares Ethereum ETF’s holdings through trusted providers.
According to the filing, the company intends to stake Ether intermittently while ensuring the 21Shares Ethereum ETF maintains sufficient liquidity to meet investor redemptions. The asset manager clarified that it would not market the ETF as a staking service or guarantee any specific returns.
Additionally, the firm emphasized that it does not claim any expertise in staking and the move is purely aimed at enhancing revenue generation for the trust.
If approved, the decision could mark a significant development for Ethereum ETF investors, allowing them indirect exposure to staking rewards. Bloomberg Intelligence analyst James Seyffart noted that this appears to be the first ETF filing with the SEC that includes a staking component.
Growing Institutional Interest in Crypto Investments
The SEC previously approved the 21Shares Core Ethereum ETF alongside offerings from major firms like BlackRock and Fidelity. However, many issuers opted to remove staking provisions from their applications ahead of regulatory approvals.
The SEC, under former Chair Gary Gensler, had previously suggested that proof-of-stake assets could be classified as securities. A shift in regulatory sentiment under the current administration has led to a surge in ETF filings.
Asset managers have recently submitted proposals for funds holding altcoins like Solana, XRP, and Litecoin, as well as diversified crypto index ETFs. Industry participants now await the SEC’s response to the latest wave of applications.
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