Cboe BZX Proposes Staking for 21Shares Core Ethereum ETF Amid SEC Review

On February 13th, in a noteworthy development, the Cboe BZX Exchange filed a proposal with the U.S. Securities and Exchange Commission (SEC) to amend rules governing the 21Shares Core Ethereum ETF. This initiative will enable the staking of Ethereum held within the Trust, a significant step that reflects evolving attitudes towards cryptocurrency investments. The filing suggests a possible shift in regulatory posture, given the previous concerns surrounding staking, with past allegations by former SEC Chairman Gary Gensler categorizing proof-of-stake tokens as securities.

The SEC’s approval of this Ethereum ETF last year, alongside others from major institutions such as BlackRock and Fidelity, marked a pivotal moment in crypto regulation. However, many firms opted to exclude staking components from their plans before receiving authorization. As the SEC transitions to a potentially more favorable stance under the current administration, the establishment of a dedicated crypto workgroup signifies ongoing efforts to delineate which tokens may be classified as “non-securities,” paving the way for broader market acceptance.