21Shares Ethereum ETF Is Filed with sEC to Stake ETH Holdings

February 13, 2025February 13, 2025

The Cboe BZX Exchange has submitted a proposal to introduce staking for the 21Shares Ethereum ETF, a move that could set a new precedent in the ETF market.

Key Takeaways:
– Cboe BZX Exchange filed to allow staking for the 21Shares Ethereum ETF.
– If approved, 21Shares Ethereum ETF holders will earn staking rewards with reduced management fees while keeping liquid investments.

In a filing released on Wednesday, Cboe outlined plans to allow staking of Ether (ETH) held by the trust. The filing states that the 21Shares Ethereum ETF would stake portions of its holdings periodically through trusted providers. The proposal is now awaiting review by the U.S. Securities and Exchange Commission (SEC).

21Shares Ethereum ETF Is Filed with sEC to Stake ETH Holdings

Staking involves locking up ETH to support network security and operations, with participants earning rewards in return. If approved, holders of the 21Shares Ethereum ETF would automatically gain from these rewards.

The SEC had previously approved the 21Shares Core Ethereum ETF alongside similar offerings from BlackRock and Fidelity. However, many issuers omitted staking from their applications to secure regulatory approval.

If granted, 21Shares Ethereum ETF would be the first to incorporate staking, a feature that analysts believe could enhance its appeal to institutional investors. While spot Bitcoin ETFs have seen strong inflows, Ethereum ETFs have lagged in comparison.

Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.

John Kojo Kumi

John Kojo Kumi is a seasoned cryptocurrency and blockchain writer celebrated for his in-depth analysis of emerging startups, tokenomics, and crypto market trends. With a Bachelor of Arts in Geography and Rural Development from Kwame Nkrumah University of Science and Technology, Kumasi, John offers a unique perspective that integrates academic knowledge with industry expertise.

Throughout his career, John has made significant contributions to Crypto News Flash, ZyCrypto, and Coinstaker Media, where he sharpened his skills in crypto journalism and blockchain analysis. Now at Bitcoininfonews.com, he provides comprehensive coverage of cryptocurrencies, DeFi, NFTs, and Web3, equipping readers with the insights needed to navigate the fast-paced blockchain ecosystem. His expertise in content management, SEO, and thorough research makes his work a trusted resource for the global crypto community