SEC Reviewed 21Shares’ ETH Staking Application
Date: 2025-02-20 Author: Henry Casey Categories: CRYPTO PAYMENTS
On February 20, the SEC published a notice of receipt of the application after reviewing the documentation from Cboe BZX Exchange. If approved, it would be the first time an Ethereum ETF in the U.S. would offer staking.
The proposal would allow the fund to earn additional profits by staking ETH, which would then be distributed to investors. The application specifies that any locked Ether would remain the property of the trust, distinguishing it from solutions such as staking-as-a-service or delegated staking, which have previously faced regulatory hurdles.
Historically, the SEC has taken a hard line on proof-of-stake assets. During Gary Gensler’s tenure, the agency classified staking as a security, forcing many Ethereum ETF issuers to drop the option in their registration statements.
However, under the Trump administration, the regulator has taken a more favorable approach to the crypto industry. The creation of a special task force on digital assets and the revision of the classification of some tokens as securities may help to form more transparent rules. Analysts believe that this will create favorable conditions for institutional investors interested in higher returns on digital assets.
Institutional investor interest in Ethereum ETFs continues to grow. According to recent 13F reports, ETH ETF ownership among investors increased from 4.8% to 14.5% in Q4 2024, while Bitcoin ETF ownership decreased from 22.3% to 21.5%. Many experts see the possibility of ETF staking as an important factor that could positively impact the price of ETH.
In parallel, the SEC recently accepted applications from Bitwise, 21Shares, and Grayscale to launch spot XRP ETFs, which has led to speculation about the expansion of the crypto exchange-traded funds market. In the changing regulatory environment, the coming months could be key for Ethereum, XRP, and other digital assets seeking institutional acceptance.
