Basri Caneri 
Crypto investment firm 21Shares has filed an application with the US Securities and Exchange Commission (SEC) to be allowed to participate in the staking activities of the Ethereum ETF. The SEC has issued a call for public comment on this application by the Cboe BZX Exchange.
Ethereum ETFs May Generate Additional Returns Through Staking
According to the application, the 21Shares Core Ethereum ETF aims to generate additional revenue by staking only Ethereum held by the fund. “Delegated staking” or third-party “staking as a service” services will not be used.
This initiative is considered a similar move to NYSE Arca’s request for staking permission for Grayscale’s Ethereum ETFs last week.
Is the SEC’s Approach to Crypto Changing?
The SEC had previously classified Proof-of-Stake (PoS) tokens as securities. However, the crypto task force established under the Trump administration argues that some tokens should no longer be considered securities.
- The SEC approved Ethereum spot ETFs last summer. However, many firms had removed the staking option in their applications.
- With the Trump administration, the SEC is reported to have a more moderate attitude towards crypto.
Institutional Interest in Ethereum Staking Increases
Ethereum’s ability to generate additional returns through staking is seen as a significant advantage for investors. Ruslan Lienkha, Chief Market Analyst at YouHodler, emphasized that more liquidity could flow into Ethereum with staking.
According to recent 13F reports, institutional investor interest in Ethereum ETFs increased from 4.8% to 14.5%. During the same period, institutional interest in Bitcoin ETFs declined from 22.3% to 21.5%.
If the SEC approves 21Shares’ staking application, it could further boost interest in Ethereum ETFs and strengthen Ethereum’s appeal to investors.
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