- The Cboe BZX Exchange has submitted a proposal to enable staking for the 21Shares Core Ethereum ETF.
- ETH surged over 5.65% following the filing request with the SEC.
The Cboe BZX Exchange, Inc. has filed a proposal formally to facilitate staking for the 21Shares Core Ethereum exchange-traded fund (ETF). In a Form 19b-4 filing, the exchange sought the U.S. Securities and Exchange Commission (SEC) approval to stake in the fund.
The SEC approved the 21Shares Core Ethereum ETF last year, along with comparable ETFs by companies like BlackRock and Fidelity. Yet, staking was conspicuously absent in the majority of such filings, with several issuers proactively excluding it to evade regulatory attention.
The filing states:
“Based on discussions with the Sponsor, the Exchanges proposes to amend several portions of the Eth ETP Amendment No. 2, as amended, in order to allow the staking of the Ethereum held by the Trust.”
Besides, under the previous SEC leadership, proof-of-stake tokens were viewed as securities, complicating the regulatory landscape for staking-related activities. Analysts suggest the SEC’s stance on crypto could shift under the Trump administration, leading to favourable conditions.
Staking Enhance Ethereum ETF Yield
At present, Ethereum ETF allows investors to gain exposure to ETH but does not provide staking rewards. Staking ETH offers a yield-generating opportunity, as stakers earn rewards for securing the Ethereum network. If approved, this would enable Ethereum ETF holders to benefit from staking rewards, potentially increasing the fund’s appeal to investors seeking yield.
ETH Surges Following Cboe’s Filing
Soon after the Cboe request declaration, the top altcoin Ethereum (ETH) registered a notable 5.65% hike. The token had floated at $2,592 in the opening hours and crossed the $2,794 high.
The ETH price has retested the crucial $2,694 and $2,786 resistance levels. At the time of writing, Ethereum traded at $2,738, with the daily trading volume reaching $25.91 billion after increasing by over 26.98%. Additionally, the market observed a liquidation of $63.37 million worth of ETH.
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