Cboe Seeks SEC Approval to Enable Staking in Ether ETFs
Cboe has filed amended 19b-4 documents with the U.S. Securities and Exchange Commission (SEC), aiming to allow staking in spot Ether (ETH) exchange-traded funds (ETFs). This marks a significant push toward integrating staking rewards into regulated investment products.
ETF issuers, including Fidelity, Franklin Templeton, VanEck, and Invesco/Galaxy, had initially included staking provisions before their ETFs launched in July, but the SEC required them to remove the feature. Now, with regulatory leadership changes, Cboe is reintroducing the proposal for the Fidelity Ethereum Fund (FETH) and Franklin Ethereum ETF (EZET).
The request follows SEC Chair Gary Gensler’s resignation, which came just before President Trump’s return to office. With Commissioner Mark Uyeda serving as acting chair, the SEC has already adopted a more crypto-friendly stance. Once Trump’s nominee, Paul Atkins, is confirmed, analysts expect further regulatory clarity on staking and crypto-related products.
“We believe the SEC will approve staking for ETFs this year,” said James Seyffart, ETF analyst at Bloomberg Intelligence. “The industry is moving in that direction, and the regulatory environment is shifting in favor of such innovations.”
Beyond Ether staking, investment firms continue expanding ETF offerings for various altcoins, with recent registrations for Sui (SUI) and Aptos (APT) ETFs and ongoing SEC reviews for Solana (SOL) and XRP (XRP) funds.
