On Feb. 12, the Chicago Board Options Exchange filed on behalf of asset manager 21Shares to list a spot staked Ethereum ETF.
The 19b-4 filed by the Cboe BZX Exchange is for a product called the “21Shares Core Ethereum ETF”, which was previously named ARK 21Shares Ethereum ETF. Its purpose is to allow staking of the ETF’s Ethereum holdings.
“I believe this is the first ETF to file with the SEC and request the ability to permit staking,” said Bloomberg ETF analyst James Seyffart. “The final deadline for this filing will be somewhere around the end of October,” he added.
Cboe files 19b-4 seeking SEC approval of *staking* in 21Shares Core Ethereum ETF… pic.twitter.com/1xp3ealoH1
— Nate Geraci (@NateGeraci) February 12, 2025
Staking to Benefit Investors
The product will use “point-and-click staking,” where the ETH remains in custody. Staking rewards would be treated as income for the fund, which will use trusted staking providers.
There are key differences from “Staking-as-a-Service.” The ETF will only stake ETH held by the Trust itself, it will not pool with other entities’ ETH, will not advertise staking services or promise specific returns, and will not subsidize slashing risks.
“Not staking the Trust’s Ether would amount to waiving the Trust’s right to free additional Ether, an act analogous to an equity ETP refusing dividends from the companies it holds,” it explained.
“Allowing the Trust to stake its Ether would benefit investors and help the Trust to better track the returns associated with holding Ether.”
In January, the SEC announced a new crypto task force dedicated to developing regulations for the space led by the pro-crypto Commissioner Hester Peirce, who had earlier hinted that staked ETH ETFs would be approved under the new administration.
Ethereum prices gained 8% over the past 12 hours following the news, hitting an intraday high of $2,790 from a low of $2,565, according to CoinGecko.
The asset retreated slightly during the Thursday morning Asian trading session to $2,720 at the time of writing. However, ETH remains bearish, having lost 26% from its 2025 high of $3,700 in early January, and no recent news or bullish fundamentals have been able to change that trend.
ETH ETF Latest
Institutional investors also seem to be getting cold feet on ETH as US spot ETFs saw their second outflow day of the month on Wednesday.
$41 million left the products, with Grayscale (ETHE) shedding $30 million, while Fidelity (FETH) lost almost $11 million. BlackRock’s ETHA fund saw zero flows for the day.
Nevertheless, it was also recently reported that Goldman Sachs had increased its ETH exposure and held almost $500 million in Ethereum ETFs, split equally between BlackRock and Fidelity.
BREAKING:
THE BIGGEST U.S. BANK GOLDMAN
SACHS WITH $2.8 TRILLION JUST
BOUGHT $450M IN ETHEREUM ETF.BANKS ARE COMING FOR YOUR ETH pic.twitter.com/IPZ0xPEBek
— Ash Crypto (@Ashcryptoreal) February 12, 2025
Yet the asset remains the crypto bogeyman among retail investors as ETH returned to the same prices it was at this time last year.
Read the full article here