The price of Ether jumped 3.5% as CBOE BZX Exchange filed on behalf of asset manager 21Shares to introduce staking to its spot Ether exchange-traded fund (ETF).
Ether (ETH) jumped 3.5% to $2,776 on the news before pulling back to $2,729 at the time of publication, according to CoinMarketCap.
21Shares wants to stake a portion of Ether “from time to time”
21Shares would be the first to offer Ether staking in a spot Ether ETF product if approved.
Ether is trading at $2,734.90 at the time of publication. Source: CoinMarketCap
It intends to stake a portion of the Trust’s Ether “from time to time” through trusted staking providers, according to a Feb. 12 filing with the United States Securities and Exchange Commission (SEC).
“Allowing the Trust to stake its Ether would benefit investors and help the Trust to better track the returns associated with holding Ether,” it said.
The filing said 21Shares will maintain sufficient liquidity in the trust to satisfy redemptions.
It also stated that it will not advertise itself as offering staking services or promise any specific returns.
The filing also said that 21Shares would not claim any staking expertise in representations to investors:
“It claims no particular expertise, experience, or technical know-how in relation to staking and is staking the Trust’s Ether solely in order to maximize the Trust’s revenue generation opportunities.”
It is significant for Ether ETF holders, who will be able to gain exposure to staking rewards for holding ETF shares.
Ether staking more appealing to institutional investors
Crypto analysts are bullish on the news, as approval could make the product far more appealing to institutions — an area where Ether ETFs have lagged behind spot Bitcoin ETFs.
Related: Ethereum short positions surge 500% as hedge funds bet on decline
Popular crypto trader Ash Crypto said in a Feb. 12 X post that “this is massive for Ethereum.”
There is broad consensus among analysts that Ether ETFs aren’t as popular as Bitcoin ETFs partly because Wall Street traders are struggling to define ETH’s unique value proposition.
It comes only weeks after Ethereum and Consenys co-founder Joe Lubin told Cointelegraph that he has been “in discussions with the ETF providers, and they’re already working hard” on getting staking approved for spot Ether ETFs.
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