21Shares Files Request with SEC to Add Staking to its Ethereum Spot ETF, Causing 4% Price Increase for ETH
21Shares has submitted a request to the SEC to add staking to its Ethereum Spot ETF, resulting in a 4% increase in the price of ETH.
The goal of 21Shares is to enhance investor profitability through ‘occasional’ staking of ETH, without guaranteeing specific returns or compromising fund liquidity.
This initiative could promote institutional adoption of Ethereum and mark a key development for crypto ETFs if approved by the SEC.
An Announcement That Boosts the Price of ETH
The price of ETH briefly rose by 4% after 21Shares filed a request with the SEC to add staking to its Ethereum Spot ETF. The news caused a spike to $2,770 before a slight decline. This initiative, conducted through the CBOE BZX Exchange, could make 21Shares the first issuer to offer an ETF ETH Spot that includes staking.
A Ambitious Project to Capture the Value of Staking
In its submission on February 12th, 21Shares specifies that it intends to stake a portion of the ETH held by its fund ‘occasionally’ through trusted providers. The stated goal is twofold: to improve profitability for investors and align the ETF’s performance closer to that of a direct investment in ETH.
However, 21Shares insists that the fund will not present itself as a staking service, will not guarantee any specific returns, and will not claim any particular expertise in this area. Additionally, the asset manager commits to maintaining sufficient liquidity to honor investor redemption requests.
A Major Step for Institutional Adoption of Ethereum
The addition of staking to an Ethereum spot ETF could significantly increase its appeal to institutional investors. Until now, these products have garnered less enthusiasm than their Bitcoin counterparts, mainly due to a lack of clarity on ETH’s unique value proposition in the eyes of Wall Street.
Influential figures in the industry believe this initiative represents a turning point for Ethereum. Joe Lubin, co-founder of Ethereum and ConsenSys, recently confirmed that several ETF issuers were actively working to validate this functionality.
Towards a New Era for Crypto ETFs?
If the SEC gives its green light, 21Shares will pave the way for a new generation of more performant and competitive Ethereum ETFs. The integration of staking would allow ETF holders to indirectly benefit from validation rewards on the Ethereum network while enjoying the regulated and liquid structure of an exchange-traded fund.
This development could also accelerate the adoption of Ethereum ETFs by traditional asset managers, further solidifying ETH’s position as an essential investment asset alongside Bitcoin.
