Ether ETF Issuers Anticipate Regulatory Approval For Staking Funds

According to Cointelegraph, issuers of Ether exchange-traded funds (ETFs) are optimistic about the potential regulatory approval for funds offering staking options. Ethereum co-founder Joe Lubin revealed that discussions with ETF providers are underway, and they anticipate a green light for staked Ether (ETH) ETFs in the near future. Lubin emphasized that fund issuers are diligently working to create optimal solutions for customers, addressing complexities related to staking and slashing. Lubin expressed confidence in the positive impact of these developments on the technology and ecosystem, suggesting that it would lead to a more robust and diversified environment. He also noted that this could result in greater client diversity. The U.S. Securities and Exchange Commission (SEC) had previously approved spot Ether ETFs, with nine products launched in July. However, these funds have experienced a slower start compared to Bitcoin (BTC) ETFs, with a cumulative inflow of approximately $2.7 billion. The SEC has not yet approved a staked Ether ETF, but industry experts believe this could change with new leadership. Currently, around 33.7 million ETH, valued at approximately $113 billion and representing 28% of the total supply, is staked. On January 21, the SEC announced the formation of a crypto task force to develop a framework for digital assets, led by Commissioner Hester Peirce, who is known for her crypto-friendly stance. In a December interview, Peirce hinted at a potential pro-crypto shift within the financial regulator under the new administration. She suggested that a change in the majority of Commissioners in favor of crypto could facilitate the approval of staked Ether ETFs. Former Polygon financial chief Young Ko expressed support for the task force led by Peirce, highlighting her understanding of the technology and advocacy for builders. Ko noted that despite his criticisms of ETH, this development benefits the ecosystem significantly. Peirce has publicly stated that ETFs should have the ability to stake for yield. Bernstein Research recently indicated that it believes ETH staking yield ETFs are likely to be approved under a crypto-friendly SEC established by the previous administration. This potential regulatory shift could pave the way for new opportunities in the cryptocurrency market.