Cboe BZX Seeks SEC Approval for Staking in 21Shares Ethereum ETF

Cboe BZX Exchange has submitted Form 19b-4 to the SEC to seek approval for staking Ethereum in the 21Shares Core Ethereum ETF.

This would be the first U.S. ETF to propose staking, enabling investors to earn rewards on their ether holdings, a feature not currently offered in Ethereum ETFs.

Staking allows investors to lock up ETH to support the Ethereum network while earning passive income. Cboe BZX plans to implement a “point-and-click” staking method for ETF holders to generate additional returns and minimize risk by ensuring that the ETH remains secure and reducing the chance of theft.

The 21Shares Core Ethereum ETF was certified last year but did not include staking due to SEC concerns about securities law violations. Recent leadership changes at the SEC have increased investor optimism that the agency may reconsider its stance on permitting staking in ETFs.

SEC Commissioner Hester Peirce has consistently advocated for regulatory adjustments allowing Ethereum ETFs to integrate staking. Bloomberg ETF analyst James Seyffart has expressed confidence in the filing’s chances, suggesting approval is likely. However, he remains cautious, noting the uncertainty surrounding regulatory decisions.

The news triggered a nearly 6% surge in Ethereum’s price. With the SEC having 240 days to review the request, approval could drive increased investment into Ethereum ETFs and further establish Ethereum as a long-term asset.

Meanwhile, VanEck has filed with the SEC to launch its “Onchain Economy” ETF, aiming to capitalize on digital transformation. The ETF intends to allocate at least 80% of its assets to companies within the crypto ecosystem, including software firms, mining companies, exchanges, infrastructure providers, and payment firms. Although the fund will not directly hold cryptocurrencies, it plans to invest in digital asset products such as commodity futures. VanEck’s strategy centres on fundamental research, market trends, and valuations, underscoring its commitment to the evolving digital asset sector.

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