The U.S. Securities and Exchange Commission (SEC) has acknowledged a 19b-4 filing from Cboe BZX Exchange, submitted on behalf of 21Shares, seeking approval to stake Ethereum held within the 21Shares Core Ethereum ETF.
On Feb. 20, the SEC published a statement acknowledging receipt of the 21Shares’ Ethereum (ETH) ETF staking proposal following its review of the filing from Cboe BZX Exchange. If approved, this would be the first time an Ethereum ETF offers staking in the United States.
By staking ETH, the plan seeks to enable the ETF to produce extra profits, which investors would then receive. The document states that all staked ether will be owned by the trust, setting it apart from models such as staking-as-a-service or delegated staking that have previously encountered regulatory opposition.
The SEC has always had a stringent policy regarding proof-of-stake assets. The government categorized staking-related activities as securities under former Chair Gary Gensler, which led to many Ethereum ETF issuers removing staking from their registration statements.
But under the Trump administration, the SEC has adopted a more pro-crypto stance, creating a dedicated crypto task force and reconsidering the classification of some tokens as securities. A more transparent legal framework for staking, according to analysts, may encourage wider adoption, especially among institutions looking for more yield options in the digital asset market.
The proposal coincides with an increase in institutional demand for Ethereum exchange-traded funds. According to recent 13F filings, ownership in ETH ETFs increased from 4.8% to 14.5% in Q4 2024, whilst ownership of Bitcoin ETFs decreased marginally from 22.3% to 21.5%. ETH ETF staking is also seen by many as a major catalyst that might boost the price of ETH.
In a related development, the SEC’s recent acknowledgment of Bitwise, 21Shares, and Grayscale’s registrations for Ripple (XRP) spot ETFs sparked speculation about a broader adoption of crypto-based ETFs. Given the growing regulatory shifts, the next few months could be critical for Ethereum, XRP, and other digital assets seeking institutional adoption.
