Cboe Seeks SEC Approval for Staking in Spot Ether ETFs
In a significant move for the cryptocurrency market, the Cboe exchange has formally requested the U.S. Securities and Exchange Commission (SEC) to permit staking within several spot ether (ETH) exchange-traded funds (ETFs). This announcement has positively impacted the price of ETH, which has surged by approximately 2% over the past 24 hours.
Prior to the launch of these funds in July, multiple issuers had incorporated staking features in their applications. However, the SEC intervened, mandating the removal of staking due to its previous stance on the matter. The current request from Cboe comes as a notable shift in the regulatory landscape.
Cboe is closely linked with five prominent issuers of ether ETFs, including Fidelity, Franklin Templeton, VanEck, and Invesco/Galaxy. On Tuesday, the exchange filed amended 19b-4 documents for both the Fidelity Ethereum Fund (FETH) and the Franklin Ethereum ETF (EZET), seeking to reinstate staking capabilities.
This development follows the departure of former SEC chair Gary Gensler, who resigned shortly before the inauguration of the crypto-friendly President Donald Trump in January. Trump’s nominee to lead the SEC, Paul Atkins, has yet to be scheduled for a confirmation hearing or Senate vote. In the interim, Commissioner Mark Uyeda is serving as the acting chair. Under Uyeda’s leadership, the SEC has taken several favorable actions concerning other crypto-related ETF applications, raising optimism that staking could receive a warm reception from the Commission.
James Seyffart, an ETF analyst at Bloomberg Intelligence, expressed confidence regarding Cboe’s request, stating, “There are still details that need to be finalized, but we anticipate that the SEC will grant approval for staking in the ETFs this year.”
In addition to the staking proposal, numerous companies have filed to launch ETF products targeting a diverse array of digital assets. Recently, firms have established Delaware-based entities for Sui (SUI) and Aptos (APT), while the SEC is actively reviewing several applications associated with Solana (SOL) and XRP (XRP), among others.
