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Highlights
- Ethereum ETF may get staking reconsideration from US SEC
- The staking of the product remains a controversial concept in the industry
- Staking, if allowed may boost subscribers revenue significantly
One of the major controversial considerations in the spot Ethereum ETF pursuit is the issue of ETH staking. One of the ultimate concessions that approved issuers have had to make is to forgo the plans for Ethereum staking. After major stakeholders have stopped talking about this, SEC Commissioner Hester Peirce just re-ignited hope for the product.
Ethereum Staking In ETFs a Possibility
Speaking in an interview with Zack Guzman, Hester Peirce stated that despite banning staking in ETF earlier, it is still a possibility. The United States Securities and Exchange Commission (SEC) approved Ethereum ETFs in a dramatic manner. This is evident that the landscape’s regulation is changing at a fast pace.
NEW: SEC Commissioner Peirce tells me Ethereum ETFs being able to stake could be open to reconsideration
“I think certainly something like staking, or any feature of the product … those are always open for reconsideration as far as I’m concerned” pic.twitter.com/SFUTPcX80z
— Zack Guzmán (@zGuz) July 17, 2024
Since Ethereum transitioned into Proof-of-Stake (PoS) through The Merge, staking remains the most important aspect of its operations. However, spot Ethereum ETF filers were forced to remove the offering from their respective applications. Grayscale, Fidelity, and 21Shares had to amend and update their individual filings to exclude the “staking” phrase. It was after this that the SEC gave its initial approval to spot Ethereum ETFs on May 23.
Allowing spot Ethereum ETF products to embrace this offering will help solidify its status in the industry overall. It will also help Wall Street investors to rake in more profit.
No Staking Equals Less Appeal of Spot Ethereum ETFs
Though Commissioner Peirce is optimistic about this Ethereum Staking reconsideration, the timeline remains unknown. There are still concerns that spot Ethereum ETFs will have less appeal with the absence of staking. The removal of staking plans from Ethereum ETFs might reduce their attractiveness to investors as they may prefer to stick with direct ETH investment which has staking rewards.
For now, the focus is on getting spot Ethereum ETF trading approval from the Securities regulator. The initial timeline of July 15, which was predicted by ETFStore president Nate Geraci, has passed. The new scheduled timeline is July 23. More amendments are beginning to show up amidst the wait. 21Shares has just released its sponsor fee 0.21% in an updated S-1 filing.
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