The U.S. Securities and Exchange Commission (SEC) has officially acknowledged a 19b-4 filing from Cboe BZX Exchange on behalf of 21Shares, seeking approval to enable staking for its Ethereum ETF.
If granted, this would allow the fund to generate additional returns by staking its Ether (ETH) holdings, with those rewards potentially benefiting investors.
According to the filing,
"The ether staked by the Sponsor on behalf of the Trust will consist exclusively of ether owned by the Trust."
It further clarifies that the staking activities "will not constitute 'delegated staking' and will not form part of a 'staking as a service' offering."
This proposal follows a similar move by NYSE Arca, which recently filed for permission to stake ETH in Grayscale’s Ethereum ETFs.
The SEC had previously approved spot Ethereum ETFs last summer, but many issuers chose to exclude staking from their registration statements due to regulatory uncertainty.
Under former Chair Gary Gensler, the SEC classified proof-of-stake tokens as securities, leading to concerns about compliance risks.
However, the regulatory stance has evolved under the Trump administration, with the SEC forming a dedicated crypto task force and considering frameworks that could clarify staking’s legal status.
Market analysts believe this shift could encourage wider institutional participation in staking.
In December, the YouHodler’s Chief of Markets Ruslan Lienkha, said,
"Under the Trump administration, staking is likely to receive the necessary legal framework, paving the way for broader adoption, including participation by institutions."
Ethereum ETFs have seen significant growth in institutional ownership.
Recent 13F filings reveal that overall ETH ETF ownership increased from 4.8% to 14.5% in the fourth quarter, while Bitcoin ETF ownership declined slightly from 22.3% to 21.5%.
This suggests that institutional investors are showing stronger confidence in Ethereum-based products, particularly as staking introduces the potential for additional yield.
In a separate development, the SEC has acknowledged Nasdaq’s filing for the CoinShares XRP ETF, initiating a 21-day public comment period.
This follows Nasdaq’s earlier submission of 19b-4 forms proposing rule changes to list both XRP and Litecoin ETFs.
While this acknowledgment does not guarantee approval, it signals the SEC’s willingness to review crypto investment products more openly than in previous years.
Recently, the SEC has also accepted spot XRP ETF filings from 21Shares, Grayscale, and Bitwise, with applications from Canary Capital and WisdomTree still pending.
XRP, currently priced at $2.69, has climbed the ranks to become the third-largest cryptocurrency by market capitalisation.
XRP is the only top 10 token that has gained value over the past 7 days.
Analysts are cautiously optimistic about the approval of XRP ETFs, with Bloomberg ETF analysts James Seyffart and Eric Balchunas estimating a 65% chance of approval.
Prediction markets, such as Polymarket, place those odds even higher at 78% by the end of 2025.
The SEC’s approach to XRP has evolved significantly since its legal battle with Ripple Labs.
A federal court ruling in August 2024 determined that XRP itself is not inherently a security, though it could be classified as one under specific conditions.
The latest filings suggest the SEC is now referring to XRP as a commodity, aligning its classification with Bitcoin and Ethereum.
The rising demand for crypto ETFs extends beyond Ethereum and XRP, with issuers actively exploring new products.
The SEC has already rejected Solana ETF applications from at least two issuers and signaled reluctance toward approving additional crypto ETFs under the Biden administration.
However, with the shifting regulatory environment, new applications for Solana, Litecoin, and Dogecoin ETFs continue to emerge.
Meanwhile, Nasdaq recently listed the Hashdex Nasdaq Crypto Index U.S. ETF, marking the first spot crypto index fund in the country.
This indicates a broader expansion of the crypto ETF market, with fund managers also experimenting with mechanisms like staking and in-kind redemptions.
Since taking office, the Trump administration has taken a more crypto-friendly stance, with efforts to position the U.S. as a leader in the digital asset space.
Ripple CEO Brad Garlinghouse remains optimistic about XRP ETF approvals, citing increased institutional interest and evolving regulations.
As the SEC continues reviewing pending ETF applications, market participants will be watching closely to see how regulators handle crypto investment products in the months ahead.
DBS has launched its first tokenised structured notes on Ethereum, breaking $100,000 investments into $1,000 units for easier trading. The notes, initially linked to cryptocurrencies, are available to accredited and institutional investors through local digital platforms.
WeatherlyBitcoin has retraced below $117,000 after reaching an all-time high last week, signaling a pause in upward momentum and growing caution among investors.
XingChiThe SEC has delayed decisions on several crypto ETFs, including Bitcoin, Ethereum, Solana, XRP, Litecoin, and Dogecoin, pushing most deadlines into October. Regulators are working on new listing standards that could allow faster approvals of altcoin ETFs once rules are finalised.
WeatherlyCitigroup plans to offer custody services for assets backing stablecoins and cryptocurrency ETFs, aiming to meet new US rules. The bank is also developing stablecoin payment solutions for faster cross-border transactions.
WeatherlyVivopower International has partnered with Crypto.com to manage its growing digital asset portfolio, including a \$100 million XRP reserve. The collaboration will provide institutional-grade custody, trading access, and DeFi options, giving Vivopower exposure to Crypto.com’s 150 million users.
AnaisEthereum co-founder Vitalik Buterin’s on-chain portfolio has surged past the $1 billion mark, fueled by Ether’s recent price rally, according to blockchain intelligence firm Arkham.
XingChiStripe is developing its own blockchain, called Tempo, to make payments faster and cheaper while staying compatible with Ethereum. The project is linked to recent crypto-related acquisitions and could help Stripe compete with major payment networks.
WeatherlyBlue Origin now accepts Bitcoin, Ethereum, Solana, and stablecoins for booking space flights through a partnership with Shift4. This move aims to make high-cost space tourism payments easier for digital asset holders using popular crypto wallets.
WeatherlyRipple is buying Canadian payments firm Rail for $200 million to grow its stablecoin business and speed up cross-border payments. The deal is set to close later this year, pending approval from regulators.
WeatherlyThe SEC and Ripple have dropped their appeals, ending the long XRP lawsuit and letting the 2023 mixed ruling stand. XRP’s price jumped over 10% after the news, and Ripple will now focus on growing its business and moving forward.
AnaisOn October 9, 2024, the Bitcoin 2024 Amsterdam Conference, a global Bitcoin industry event, was grandly opened at Westergas in Amsterdam, the Netherlands.
AlexOn Thursday (October 10), Bitcoin continued its downward trend yesterday and is currently trading around $60,500. Although the latest Federal Reserve minutes released dovish signals, it failed to boost Bitcoin. At the same time, Musk bluntly said that if Trump loses the election, he will be finished, Bitcoin will be finished, and Dogecoin will be finished.
Miyuki
WeiliangSolana's gaming ecosystem is growing with SonicX, a tap-to-earn game integrated into TikTok via Solana's Sonic SVM. Following Notcoin's success, SonicX aims to attract a new player base by blending gaming with social media. The key question: will it mirror Notcoin's success or fade away like many others?
CatherineRipple has filed a cross-appeal in response to the SEC’s 2 October appeal which challenges the favourable 7 August ruling. Ripple is now prepared to take the fight to a higher US court. Will this prolonged legal battle ever find a resolution?
KikyoCharles Hoskinson addressed the negative sentiment surrounding Cardano, stating it stems from the network's transition into the Voltaire era, which aims to decentralize governance and address long-standing issues. He emphasized that Cardano's transparency and unique governance set it apart from other blockchains, reinforcing its commitment to innovation, privacy, and long-term growth.
AnaisOpenAI’s recent report warns that its chatbot is being misused to generate misinformation aimed at influencing voters during national elections. AI-generated content’s potential for future misuse raises serious concerns, particularly with the Presidential elections approaching. Is the integrity of our democratic processes at risk?
CatherineUbisoft is set to launch its first web3 game, Champions Tactics: Grimoria Chronicles, on 23 October 2024, using blockchain technology through the Oasys platform. The game allows players to form teams of mythical Champions for strategic PvP battles, aiming to create an immersive gaming experience.
WeatherlyAs Zoom prepares to launch lifelike AI clones in 2025, the company seeks to revolutionise workplace communication. You could soon have your digital twin attending meetings for you. But will this innovation boost productivity or foster laziness and complacency?
KikyoCato Networks has raised concerns about the ProKYC deepfake tool, which allows criminals to bypass KYC checks by creating fake identities and realistic videos for cryptocurrency exchanges. This advanced fraud technique has led to significant financial losses, highlighting the need for stronger security measures in financial institutions.
Joy