SEC Considers 21Shares’ Proposal to Unlock Staking for Ethereum ETF
The U.S. Securities and Exchange Commission (SEC) acknowledged a 19b-4 filing from Cboe BZX Exchange on behalf of 21Shares on Wednesday afternoon, inviting comments on a proposal to allow staking for the 21Shares Core Ethereum ETF.
If approved, the ETF could generate additional returns on its ETH holdings, which may then be distributed to investors.
According to the filing, “The ether staked by the Sponsor on behalf of the Trust will consist exclusively of ether owned by the Trust. The Sponsor’s staking activities on behalf of the Trust will not constitute ‘delegated staking’ and will not form part of a ‘staking as a service’ offering.”
This follows a similar filing last week by NYSE Arca seeking approval for staking in Grayscale’s Ethereum ETFs. While the SEC approved spot Ethereum ETFs last summer, many firms initially excluded staking from their registration statements.
Under former Chair Gary Gensler, the SEC had classified proof-of-stake tokens as securities. However, the agency has since adopted a more favorable stance toward crypto under the Trump administration, even establishing a crypto task force to evaluate which tokens could be classified as “non-securities.”
“Under the Trump administration, staking is likely to receive the necessary legal framework, paving the way for broader adoption, including participation by institutions,” said YouHodler Chief of Markets Ruslan Lienkha told The Block. “With such a framework in place, Ethereum is well-positioned to attract increased liquidity as it offers an additional yield-generating opportunity through staking.”
Institutional interest in Ethereum ETFs surged in the fourth quarter, according to the latest 13F filings. ETH ETF ownership rose from 4.8% to 14.5%, while BTC ETFs saw a slight decline from 22.3% to 21.5%.
