The Cboe BZX Exchange has made a groundbreaking move by submitting a proposed rule change to the U.S. Securities and Exchange Commission (SEC) for the 21Shares Core Ethereum ETF, allowing for staking. This filing, done through a Form 19b-4, aims to introduce staking for the Ethereum held by the ETF trust, making it the first ETF in the U.S. to incorporate this feature.
While the SEC has previously approved several Ethereum ETFs, including the 21Shares Ethereum ETF, staking was not part of these offerings due to regulatory concerns. However, with this recent proposal, the Cboe BZX Exchange is looking to change that narrative and open up new opportunities for investors.
According to the filing, the Exchange plans to amend certain sections of the Eth ETP Amendment No. 2 to allow for the staking of Ethereum held by the Trust. This move could have significant implications for Ethereum and the wider crypto market.
Staking is a crucial feature for Ethereum as it allows holders to earn passive rewards for helping secure the network. By incorporating staking into the ETF, investors can now benefit from these rewards, creating a new incentive to invest in Ethereum.
The SEC has previously expressed concerns about whether staking could be considered a security, leading to regulatory uncertainty in the crypto space. However, with this rule change request, it seems that the SEC is shifting its approach and may soon greenlight staking for crypto-related ETFs.
If approved, this move could pave the way for more crypto-related ETFs to incorporate staking, attracting capital and creating new opportunities for investors. As passive staking rewards become a compelling benefit for investors, Ethereum ETFs could see increased interest and investment.
The approval of the 21Shares Core Ethereum ETF with staking could set a precedent for other crypto firms looking to follow suit. The Cboe BZX Exchange, known for its activity in the ETF space, has also filed proposals for assets like XRP, indicating a growing trend towards crypto-related ETFs.
In conclusion, the integration of staking into the 21Shares Core Ethereum ETF marks a significant development in the crypto market. With the potential for more ETFs to incorporate staking in the future, investors have a new way to earn rewards on their holdings, further solidifying Ethereum’s position in the digital asset landscape.