Ethereum (ETH) has fully recovered its losses in the past 24 hours following 21Shares’ groundbreaking proposal to offer staking services on its spot ETH ETF products. After hitting a low of $2,551.17, Ethereum is now trading at $2,794.86, marking a 4.73% increase at the time of writing.
21Shares Leads the Push for Ethereum ETF Staking
The proposal, submitted via a 19b-4 filing with the U.S. Securities and Exchange Commission (SEC) by Cboe BZX Exchange, aims to amend the ETH ETP Amendment No. 2 to allow staking. If approved, 21Shares will become the first issuer to integrate staking into an Ethereum ETF.
“Based on discussions with the Sponsor, the Exchange proposes to amend several portions of the ETH ETP Amendment No. 2, as amended, to allow the staking of the Ethereum held by the Trust,” Cboe stated in the filing.
The primary goal is to generate additional yield for ETF holders without staking ETH with affiliates. Instead, it will collaborate with its custodians to manage the staking process while ensuring liquidity remains available for redemptions.
Ethereum Price Recovery and Market Sentiment
The news of 21Shares’ proposal has significantly influenced Ethereum’s market sentiment. Despite the broader bearish trend, this development has reignited optimism, aligning with earlier projections of ETH’s potential rally to $10,000.
So far, Ethereum has struggled to break the $4,000 resistance level in this bull cycle. Market bears recently turned the $3,000 mark into a strong resistance, but the latest ETF staking news has helped ETH regain momentum. The ETH/BTC ratio also hit its lowest level, an indicator that analysts suggest could contribute to a further rebound.
Regulatory Outlook and Future Catalysts
While Ethereum ETFs have yet to drive a significant price surge, regulatory approval for staking could change the narrative. Under a potential Trump administration, improved crypto regulations might enhance the chances of SEC approval.
Also Read: Goldman Sachs Boosts Ethereum ETF Holdings by 2,000%, Bitcoin ETF Stash Hits $1.5B
Additionally, Ethereum’s upcoming Pectra upgrade could further boost adoption and price action. If approved, staking on Ethereum ETFs could be a major game-changer, reinforcing ETH’s bullish trajectory in the months ahead.
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.
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