Ethereum ETF Staking: SEC Wrestles with Crypto's Earning Perks
Published Date: 5/29/2025
Notice
Summary
The Cboe BZX Exchange wants to change the rules for the 21Shares Core Ethereum ETF so it can earn extra rewards by staking its Ethereum. The SEC is now deciding whether to approve this change, which could affect investors by potentially boosting returns. A final decision is expected by May 26, 2025, so keep an eye out for updates!
Analyzed Economic Effects
2 provisions identified: 0 benefits, 0 costs, 2 mixed.
Proposal to Permit ETF Ether Staking
If you own shares of the 21Shares Core Ethereum ETF, the Cboe BZX Exchange proposed a rule change to allow the Trust to stake the ether it holds. The proposal was filed on February 12, 2025 and would amend BZX Rule 14.11(e)(4) to permit staking of the Trust's ether.
SEC Review and Decision Timeline
The SEC instituted proceedings to decide whether to approve or disapprove the proposed staking change and identified legal and policy issues under Section 6(b)(5) of the Securities Exchange Act. The Commission designated May 26, 2025 as the date by which it shall approve or disapprove (or institute further proceedings); written comments are invited by June 20, 2025 with rebuttals due by July 3, 2025.
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Department and Agencies
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Previous / Next Documents
Previous: 2025-09632, Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing of a Proposed Rule Change To List and Trade Shares of the Canary Staked TRX ETF Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares
The Cboe BZX Exchange wants to start trading shares of the Canary Staked TRX ETF, a new fund tied to the cryptocurrency TRX. This change affects investors looking for fresh ways to invest in crypto through the stock market, with trading expected to begin soon after SEC approval. It’s a cool new option that could shake up how people invest in digital assets, possibly impacting money flows in the crypto and ETF markets.
Next: 2025-09634, Submission for OMB Review; Comment Request; Extension: Rule 0-4
The SEC is asking to keep Rule 0-4, which helps investment advisers and related folks apply for special permission to skip certain rules. About 7 applications come in yearly, costing applicants between $15,000 and $240,000 depending on complexity. This extension keeps the process going smoothly without changing fees or deadlines.