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CBOE Proposes Ethereum Staking ETF: A New Era for Crypto Investors

Coin WorldWednesday, Feb 12, 2025 5:27 pm ET

1min read

The Chicago Board Options Exchange (CBOE) has filed a proposal with the U.S. Securities and Exchange Commission (SEC) seeking approval for Ethereum staking in the 21Shares Core ETF. This move, if approved, would allow investors to gain exposure to Ethereum's staking rewards through an exchange-traded fund (ETF).

Ethereum staking involves locking up ETH tokens to support the Ethereum network and earn rewards. The proposed rule change by CBOE would enable the 21Shares Core ETF to participate in Ethereum staking, potentially providing investors with additional returns. The ETF currently tracks the performance of the S&P Ethereum Index.

The CBOE's proposal comes as the Ethereum network transitions to a proof-of-stake (PoS) consensus mechanism, known as Ethereum 2.0. This transition is expected to improve the network's scalability, security, and sustainability. As more ETH tokens are staked, the network's security and stability are expected to increase, potentially driving demand for ETH and its associated ETFs.

The SEC's approval of the CBOE's proposal would mark a significant milestone for the cryptocurrency industry, as it would provide investors with a regulated and accessible way to participate in Ethereum staking. The SEC has been increasingly open to cryptocurrency-related products, having approved several Bitcoin ETFs in recent years.

However, the SEC has not yet indicated whether it will approve the CBOE's proposal. The regulatory body has been cautious in its approach to cryptocurrency-related products, citing concerns about market manipulation, investor protection, and the potential for fraud. The CBOE's proposal will likely face scrutiny from the SEC and other regulatory bodies before a final decision is made.

In the meantime, investors and cryptocurrency enthusiasts are eagerly awaiting the SEC's decision on the CBOE's proposal. If approved, the 21Shares Core ETF could become a popular investment vehicle for those looking to gain exposure to Ethereum's staking rewards. The proposed rule change could also pave the way for other ETF providers to offer similar products, further expanding the cryptocurrency investment landscape.

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