Ether Price Rises Amid 21Shares' Staking Proposal For Spot ETF

According to Cointelegraph, the price of Ether experienced a 3.5% increase following the CBOE BZX Exchange's filing on behalf of asset manager 21Shares to incorporate staking into its spot Ether exchange-traded fund (ETF). Initially, Ether (ETH) surged to $2,776 before retracting to $2,729, as reported by CoinMarketCap. 21Shares aims to become the first to offer Ether staking within a spot Ether ETF product, pending approval. The company plans to stake a portion of the Trust’s Ether periodically through reliable staking providers, as detailed in a February 12 filing with the United States Securities and Exchange Commission (SEC). The filing emphasizes that allowing the Trust to stake its Ether would benefit investors and enhance the Trust's ability to track returns associated with holding Ether. Additionally, 21Shares assures maintaining sufficient liquidity in the trust to meet redemption demands. The filing clarifies that 21Shares will not market itself as a provider of staking services or guarantee specific returns. It also states that 21Shares does not claim any particular expertise or technical know-how in staking, focusing solely on maximizing the Trust’s revenue generation opportunities. This development is significant for Ether ETF holders, who could gain exposure to staking rewards by holding ETF shares. Crypto analysts are optimistic about the potential approval, suggesting it could make the product more attractive to institutional investors, an area where Ether ETFs have lagged behind spot Bitcoin ETFs. Popular crypto trader Ash Crypto expressed enthusiasm in a February 12 post, describing the development as significant for Ethereum. Analysts generally agree that Ether ETFs have not matched the popularity of Bitcoin ETFs, partly due to Wall Street traders' challenges in defining ETH’s unique value proposition. This news follows recent comments from Ethereum and ConsenSys co-founder Joe Lubin, who mentioned ongoing discussions with ETF providers working towards getting staking approved for spot Ether ETFs. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.