The price of Ether (ETH) surged by 3.5%, reaching $2,776 on news that the CBOE BZX Exchange, on behalf of asset manager 21Shares, filed a proposal with the U.S. Securities and Exchange Commission (SEC) to introduce staking in its spot Ether exchange-traded fund (ETF). However, ETH’s price corrected slightly, settling at $2,729 at the time of publication, according to CoinMarketCap.
21Shares’ proposal represents a milestone in the cryptocurrency ETF space. If approved, it would make the firm the first to offer Ether staking within a spot Ether ETF product. In its Feb. 12 SEC filing, 21Shares revealed plans to stake a portion of the Trust’s Ether “from time to time” through trusted staking providers. This move is aimed at enhancing returns for investors and helping the Trust better track the performance of Ether.
Notably, the filing emphasizes that 21Shares will not advertise staking services or promise specific returns, nor will it claim any expertise in staking. The firm clarified that it is staking Ether solely to increase the Trust’s revenue generation potential.
The proposal has significant implications for investors. Ether ETF holders would be able to gain exposure to staking rewards without directly managing staking themselves. This feature could make Ether ETFs more attractive, particularly to institutional investors, an area where Ether ETFs have traditionally lagged behind their Bitcoin counterparts.
Crypto analysts are bullish on the news, seeing it as a potential game-changer for Ethereum’s adoption in the institutional market. Popular crypto trader Ash Crypto called it “massive for Ethereum” in a Feb. 12 X post, highlighting the growing appeal of Ether ETFs as staking rewards become a part of the investment landscape.
BREAKING:
— Ash Crypto (@Ashcryptoreal) February 13, 2025
🇺🇸 21SHARES HAVE PROPOSED TO
ADD STAKING TO ITS $ETH ETFS.
THIS IS MASSIVE FOR ETHEREUM !!
This filing comes just weeks after Ethereum co-founder Joe Lubin revealed discussions with ETF providers about incorporating staking into Ether ETFs, signaling a significant shift in institutional adoption of Ethereum products.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Ethereum Price Surges as 21Shares Pushes for ETF Staking Amid SEC Filing
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