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21Shares Ethereum ETF Staking Proposal Now Under SEC Review

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21Shares Ethereum ETF Staking Proposal Now Under SEC Review

Key Points:

  • The SEC has acknowledged a filing from Cboe BZX and 21Shares suggesting to stake Ethereum within the 21Shares Ethereum ETF.
  • The proposal ensures that only assets owned by the ETF will be staked using “point-and-click staking” to avoid addressing regulatory concerns.

The U.S. Securities and Exchange Commission (SEC) has acknowledged a 19b-4 filing from Cboe BZX Exchange on behalf of 21Shares, proposing to introduce staking for Ethereum held within the 21Shares Ethereum ETF.

Read more: 21Shares Ethereum ETF Seeks SEC Approval for Staking

SEC Acknowledged 21Shares Ethereum ETF Staking Proposal

The filing outlines a plan to stake Ethereum assets directly owned by the ETF to generate additional returns for investors. If approved, 21Shares Ethereum ETF would mark the first instance of an Ethereum ETF offering staking in the United States.

Unlike delegated staking or staking-as-a-service models, which have previously faced regulatory scrutiny, this proposal ensures that only assets owned by the trust will be staked. The process will rely on “point-and-click staking,” a method allowing the ETF to participate in Ethereum’s proof-of-stake (PoS) consensus mechanism without transferring assets to third parties.

Bloomberg ETF analyst James Seyffart has projected that, following the SEC’s formal acknowledgement of the filing, a final decision on approval or rejection is likely by October.

Leadership Changes at SEC Signal Possible Shift in Crypto Policy

The SEC had previously approved spot Ethereum ETFs, but many issuers have removed staking provisions from their applications due to regulatory uncertainty. Under former Chair Gary Gensler, the regulator maintained that proof-of-stake tokens could be classified as securities, leading to restrictions on staking activities.

The SEC’s stance on crypto has undergone shifts in recent years. Recent leadership changes have sparked optimism among industry participants. Acting SEC Chair Mark Uyeda has established a Crypto Task Force led by Commissioner Hester Peirce, known for her pro-crypto stance with a potentially more accommodating approach to digital assets.

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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John Kojo Kumi

20 February 2025, 04:59:00 GMT +0000

John Kojo Kumi is a cryptocurrency researcher and writer specializing in emerging startups, tokenomics, and market dynamics within the blockchain ecosystem. With years of experience in crypto journalism and blockchain research, he provides in-depth coverage of decentralized finance (DeFi), NFTs, and Web3 innovations.

He holds a Bachelor of Arts in Geography and Rural Development from Kwame Nkrumah University of Science and Technology, Kumasi, bringing a multidisciplinary perspective to the evolving digital asset space. As a Crypto News Writer, he tracks and reports on industry trends, while his role as a Registrar at the Commission on Human Rights and Administrative Justice reflects his commitment to governance and transparency.

His expertise spans content strategy, SEO optimization, and technical research, enabling him to craft insightful, data-driven analyses. Passionate about blockchain’s transformative potential, he strives to equip readers with the knowledge to navigate the complexities of digital assets and decentralized technologies.

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