The SEC is reviewing a proposal from 21Shares to introduce staking in 21Shares Ethereum ETF, a first for U.S.-listed funds.
The U.S. Securities and Exchange Commission (SEC) has acknowledged a 19b-4 filing from Cboe BZX Exchange on behalf of 21Shares seeking approval to stake Ethereum within the 21Shares Ethereum ETF.
| Key Takeaways: – The SEC is reviewing a proposal from 21Shares to introduce staking in 21Shares Ethereum ETF, a first for U.S.-listed funds. – Recent filings show a significant increase in institutional ownership of Ethereum ETFs, jumping from 4.8% to 14.5% in Q4 2024. |
On February 20, the SEC confirmed receipt of the proposal. Bloomberg ETF analyst James Seyffart noted that this is the first Ethereum ETF to formally request staking approval from the regulator.
According to the filing, any staked Ethereum will remain under the ownership of the 21Shares Ethereum ETF, unlike staking-as-a-service or delegated staking models that have previously faced regulatory challenges.
The SEC has historically maintained a strict stance on proof-of-stake assets, with prior leadership categorizing staking-related activities as securities.
However, the regulatory climate surrounding crypto investments appears to be shifting. Institutional interest in Ethereum ETFs has surged, with recent 13F filings showing a rise in ownership from 4.8% to 14.5% in the fourth quarter of 2024.
Additionally, the SEC has acknowledged registration filings for spot XRP ETFs from firms such as Bitwise, 21Shares, Grayscale, and CoinShares. While this does not guarantee approval, it signals a more receptive approach toward crypto investment products.
| 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. |
