Ethereum ETF Gets Green Light to Stake and Earn Rewards Like a Pro
Published Date: 2/25/2025
Notice
Summary
The Cboe BZX Exchange wants to update the 21Shares Core Ethereum ETF so it can earn extra rewards by staking the Ether it holds. This change affects investors in the ETF and could boost returns without extra costs. The proposal was filed in February 2025 and is now open for public comments before any final decision.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
ETF Can Stake Ether to Earn Rewards
The Exchange filed a proposal on February 12, 2025 to allow the 21Shares Core Ethereum ETF to stake the ether it holds so the Trust may receive staking rewards of ether that may be treated as income to the Trust. This change is intended to let the Trust boost returns for its shareholders by earning additional ether without charging shareholders extra fees.
Custody, Slashing, and Provider Limits
The Sponsor may stake only the Trust's ether through one or more staking providers, which may include the Custodian or a Custodian affiliate (but not affiliates of the Sponsor). Staked ether will remain at the custody wallet using a "point-and-click" process (reducing theft risk at the node) but the Sponsor will not bear or subsidize the risk of slashing and will not pool the Trust's ether with other entities (though pooling may occur at the Staking Provider level).
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