The CBOE BZX Exchange is demanding SEC approval to introduce stacking for the 21shares core ethereum exchange-traded funds.
recently to fill Presented as Form 19B-4, CBOE BZX has requested SEC approval for Ethereum (Eth) held within the fund. This is the first time ETFs in the US have proposed stacking. If approved, it will allow investors to state their ether and earn prizes, which is currently not possible in the Etharium ETF.
Stacking involves locking ETHs to help secure the atherium network by earning passive income in the process. Stacking can open new opportunities for investors to earn additional returns compared to keeping ETF only. The CBOE BZX plans to use the “point-end-click” method for stating, which means that ETH will not be transferred, reducing the risk of theft during the staking process.
Despite being certified last year, 21Shares Core Etharium ETF did not allow for stakeing. SEC is hesitant to allow staking in ETFs as it is due to concerns that it will violate securities laws. However, the change in leadership within SEC has renewed investors’ confidence that the regulator may eventually consider Stek in ETF products.
SEC Commissioner Hester is advocating regulatory changes that will allow the atherium ETF to include stacking. Bloomberg ETF analyst James Safarte expressed optimism of filing opportunities, stating that he believes it would probably be approved. He is cautious given uncertainty that surrounds regulatory decisions.
Due to this news, the price of Etherium increased by about 6% soon after the announcement. SEC now has 240 days to decide on the request. If approved, the change can encourage higher investment in atherium ETFs and help to strengthen the case for atherium as a long -term investment.
