The price of Ether saw a brief increase of 3.5% following a filing by the CBOE BZX Exchange on behalf of asset manager 21Shares to incorporate staking into its spot Ether exchange-traded fund (ETF). This development catapulted Ether’s value initially to $2,776, although it later settled at $2,729, as reported by CoinMarketCap. If approved, 21Shares will be the pioneering entity to offer Ether staking within a spot Ether ETF product.
The proposal involves occasionally staking a portion of the trust’s Ether through reliable staking providers, as indicated in a February 12 filing with the United States Securities and Exchange Commission. This strategy is designed to enhance investor benefits and more closely align the trust’s returns with those of holding Ether. Importantly, the filing assures sufficient liquidity to accommodate investor redemptions and clarifies that the ETF will not market itself as a staking service nor promise specific returns.
Additionally, 21Shares has stated it possesses no specialized expertise in staking. The move is poised to significantly benefit Ether ETF holders, allowing them to partake in staking rewards. Analysts view this as a positive step that could make Ether ETFs more attractive to institutional investors — a segment where they have typically lagged behind Bitcoin ETFs.
The market’s response comes shortly after Ethereum and ConsenSys co-founder Joe Lubin revealed ongoing discussions with ETF providers about integrating staking into spot Ether ETFs. However, potential investors are reminded that all trading involves risks, and due diligence is essential when making investment decisions.
