Cboe BZX Files First-Ever SEC Request to Allow Staking for 21Shares’ Ethereum ETF
CBOE BZX Exchange has recently proposed a proposed rule change to the Securities and Exchange Commission (SEC) to allow Staging of the 21shares Core Ethereum ETF. The request was filed through Form 19b-4 and is intended to accumulate Ethereum held by ETF Trust. If approved, it will become the first ETF in the United States to be included in the equity.
The SEC has previously approved several Ethereum ETFs, such as the 21shares Ethereum etf, as well as other high-profile products from companies such as BlackRock and Fidelity. However, most of these approvals exclude bets due to regulatory issues.
The document says, “Based on discussions with sponsors, the Exchange proposed to amend several parts of the ETH ETP Amendment No. 2 in order to allow the Trust’s points to hold.”
What does this mean for Ethereum?
Discharge is an important feature for Ethereum because it allows holders to win passive rewards to help ensure network protection. However, Staking has not been part of the Ethereum ETF product so far, as the SEC has previously expressed concerns about whether it can be considered as security. This is part of the broader regulatory uncertainty surrounding cryptocurrencies, with SEC Chairman Gary Gensler tagging various cryptocurrency-related activities, including Sticking and Stablecoins, as potential securities. However, this approach is changing now, and many expect the SEC to win in 2025.
This rule change request can pave the way for more crypto-related ETF converged orders, creating new opportunities for investors to win rewards for their shares. As a result, Ethereum ETFs may attract capital, as passive points rewards become a compelling benefit for investors.
ETF competition heating
The SEC’s endorsement of the 21shares Core Ethereum ETF may set a precedent, while other crypto companies hope to follow suit. CBOE BZX exchange is very active in the ETF space and has also made recommendations for other assets such as XRP.
