# 2025-04327: Staking Ether in ETFs? Franklin Crypto Fund Eyes Reward Boost

2025-04327, Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Amend the Rule Governing the Listing and Trading of Shares of the Franklin Crypto Index ETF To Permit Staking, is a Federal Register notice from Securities and Exchange Commission published 2025-03-18, effective Proposed rule change filed March 10, 2025; published March 18, 2025; public comments invited through April 8, 2025.; PRIA reads it as touching household money (as of 2026-06-08).

- Canonical: https://policyrisk.com/federal-register/2025-04327
- As of: 2026-06-08
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Document number: 2025-04327
- Title: Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Amend the Rule Governing the Listing and Trading of Shares of the Franklin Crypto Index ETF To Permit Staking
- Type: Notice
- Agencies: Securities and Exchange Commission
- Citation: 90 FR 12621
- Published: 2025-03-18
- Effective: Proposed rule change filed March 10, 2025; published March 18, 2025; public comments invited through April 8, 2025.
- Comments close: not stated
- Significant: no
- Touches household money: yes
- Regulation identifier numbers: none
- Last updated: 2026-06-08

## In one line

Staking Ether in ETFs? Franklin Crypto Fund Eyes Reward Boost

## Summary

The Cboe BZX Exchange wants to update the rules for the Franklin Crypto Index ETF so it can earn extra rewards by staking its ether holdings. This change affects investors in the ETF by potentially boosting returns without changing how the shares trade. The proposal was filed in March 2025 and is now open for public comments before it can take effect.

## Effects PRIA read

- ETF May Stake Its Ether Holdings: benefit, medium. The Franklin Crypto Index ETF may stake a portion of the ether it holds and receive staking rewards that may be treated as income to the Fund. The Exchange filed this proposed change on March 10, 2025 and is soliciting comments through April 8, 2025.
- Sponsor Won't Cover Slashing Losses: cost, medium. If the Fund's staked ether suffers a loss through "slashing," the Sponsor will not bear or subsidize that risk on behalf of the Fund. The filing states the Sponsor will not subsidize slashing losses.
- Custody, Liquidity, and Reduced Theft Risk: benefit, low. The filing says staking will use "point-and-click" methods so the Fund's staked ether will remain in the Custodian's wallet and the Sponsor expects to maintain sufficient liquidity to satisfy redemptions. The filing also states point-and-click staking reduces the risk of theft at the node, though i…

## Related documents

- [2026-20466](https://policyrisk.com/federal-register/2026-20466): Adviser and Regulated Fund Custody Rules; Crypto Custody Rules, 2026-10-06
- [2026-19260](https://policyrisk.com/federal-register/2026-19260): Rescission of Rule 14a-8's Federal Regulation of Shareholder Proposals and Amendments to Rule 14a-4, 2026-09-21
- [2026-18424](https://policyrisk.com/federal-register/2026-18424): Political Contributions by Certain Investment Advisers, 2026-09-10
- [2026-18190](https://policyrisk.com/federal-register/2026-18190): Transfer Agent Rules, 2026-09-04
- [2026-17183](https://policyrisk.com/federal-register/2026-17183): Regulation Crypto Assets, 2026-08-21
- [2026-12163](https://policyrisk.com/federal-register/2026-12163): The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS, 2026-06-17

## Sources
- [2025-04327 on federalregister.gov](https://www.federalregister.gov/documents/2025/03/18/2025-04327/self-regulatory-organizations-cboe-bzx-exchange-inc-notice-of-filing-of-a-proposed-rule-change-to)
- [2025-04327 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2025-03-18/pdf/2025-04327.pdf)

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- [Next: 2025-04328, Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate…](https://policyrisk.com/federal-register/2025-04328)
- [All Federal Register documents](https://policyrisk.com/federal-register)

Source: PRIA, https://policyrisk.com/federal-register/2025-04327 (as of 2026-06-08).