Cboe Pushes for Ethereum ETF Staking in Landmark SEC Request

Cboe BZX Exchange is making a bold move by seeking SEC approval to introduce staking for the 21Shares Core Ethereum ETF.

If granted, this would allow the fund to earn staking rewards on its ETH holdings, potentially setting a new standard for crypto investment products.

The SEC has previously restricted Ethereum ETFs from engaging in staking, citing concerns over securities laws. This stance has led to legal action against major platforms like Coinbase and Kraken for offering staking services without proper registration.

To navigate these hurdles, Cboe is proposing a unique staking method that keeps ETH within the ETF’s custody, reducing risks while maintaining compliance.

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This is the first attempt to incorporate staking into a U.S.-listed crypto ETF, and its approval could open the door for similar products. With changes in SEC leadership and increased institutional interest in crypto, there’s growing optimism about regulatory acceptance.

Bloomberg’s James Seyffart estimates that a decision could come by October, potentially reshaping how Ethereum investment products operate.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.