# 2025-04353: Franklin Ethereum ETF Staking Proposal Gets SEC Green Light Wait

2025-04353, 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 Ethereum ETF To Permit Staking, is a Federal Register notice from Securities and Exchange Commission published 2025-03-18; PRIA reads it as touching household money (as of 2026-06-08).

- Canonical: https://policyrisk.com/federal-register/2025-04353
- As of: 2026-06-08
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Document number: 2025-04353
- 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 Ethereum ETF To Permit Staking
- Type: Notice
- Agencies: Securities and Exchange Commission
- Citation: 90 FR 12611
- Published: 2025-03-18
- Effective: unknown
- Comments close: not stated
- Significant: no
- Touches household money: yes
- Regulation identifier numbers: none
- Last updated: 2026-06-08

## In one line

Franklin Ethereum ETF Staking Proposal Gets SEC Green Light Wait

## Summary

The Cboe BZX Exchange wants to update the rules for the Franklin Ethereum ETF so it can start staking the ether it holds. This means the fund can earn extra rewards by participating in Ethereum’s network, potentially boosting returns for investors. The change is under review now, and if approved, it could start soon, affecting anyone who invests in this ETF.

## Effects PRIA read

- ETF May Stake Ether to Earn Rewards: benefit, medium. The Franklin Ethereum ETF would be allowed to stake some of the ether it holds and receive staking rewards (additional ether) that may be treated as income to the Fund. The rule change was filed with the SEC on March 10, 2025 and would permit the Fund to earn rewards by participating in Ethereum’s…
- Staking Carries Slashing (Loss) Risk: cost, medium. Staking on Ethereum can lead to forfeiture or “slashing” of staked ether if validators engage in malicious activity or violate protocol rules, and the filing states the Sponsor will not bear or subsidize slashing risk on behalf of the Fund. Shareholders could therefore bear losses if staked ether i…
- Custody Method Keeps Ether in Custodian Wallet: mixed, medium. The Sponsor intends to use “point-and-click” staking that does not move the Fund’s ether out of the Custodian’s wallet, which the filing says reduces the risk of theft at a node while staked but does not reduce slashing risk. This changes the operational risk profile for ETF shareholders.
- Sponsor Will Maintain Liquidity for Redemptions: benefit, low. The Sponsor states it expects to maintain sufficient liquidity in the Fund to satisfy redemptions even when staking a portion of the Fund’s ether. This aims to protect shareholders’ ability to redeem shares.
- Sponsor Limits Staking to Fund’s Ether Only: benefit, low. The Sponsor will stake only ether owned by the Fund, will not seek to pool the Fund’s ether with ether held by other entities (though pooling may occur at a Staking Provider level), and will not advertise or solicit staking services to others. This limits the Fund’s staking activity to Fund shareho…

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- [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
- [2025-04353 on federalregister.gov](https://www.federalregister.gov/documents/2025/03/18/2025-04353/self-regulatory-organizations-cboe-bzx-exchange-inc-notice-of-filing-of-a-proposed-rule-change-to)
- [2025-04353 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2025-03-18/pdf/2025-04353.pdf)

## Related
- [Previous: 2025-04352, Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Designation of a Long…](https://policyrisk.com/federal-register/2025-04352)
- [Next: 2025-04354, Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Designation of a…](https://policyrisk.com/federal-register/2025-04354)
- [All Federal Register documents](https://policyrisk.com/federal-register)

Source: PRIA, https://policyrisk.com/federal-register/2025-04353 (as of 2026-06-08).