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- The CBOE BZX Exchange has officially registered to offer staking features for the Ethereum ETF managed by asset manager 21Shares.
- Ethereum surged by 6% to $2,794 before pulling back to $2,676, yet optimism is growing that it could soon reach the $3,000 mark.
On Wednesday, the Cboe BZX Exchange submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to permit staking within the 21Shares Core Ethereum (ETH) Exchange-Traded Fund (ETF). As a result, Ethereum, the second-largest cryptocurrency with a market capitalization of $328 billion, saw a 6.73% surge to trade at $2,794 before pulling back to $2,676. The trading volume of ETH also saw a notable increase of 27.5%, reaching $26 billion.
Ethereum is currently facing key resistance levels, with a major psychological barrier between $2,800 and $2,820, while the key target for bulls remains $3,000. A break above this level could signal a bullish reversal, particularly as it aligns with Ethereum’s 200-day moving average, a critical indicator for long-term trends.
Technical indicators suggest that momentum is building, and the Relative Strength Index (RSI) remains above 50, reflecting sustained buying pressure. However, the Moving Average Convergence Divergence (MACD) indicates a potential slowdown in bullish momentum, suggesting that ETH may struggle to break through resistance before achieving a clear breakout.
Adding to the market discussion, crypto analyst Ali Martinez reported on X that whales have accumulated over 600,000 ETH in the past week. He also noted that investor sentiment remains uncertain, stating, “Investors are feeling ‘anxious’ as Ethereum struggles to reclaim $3,000. A decisive move above this level could restore confidence.”
Whales have bought over 600,000 #Ethereum $ETH in the past week! pic.twitter.com/y736DxlGSP
— Ali (@ali_charts) February 12, 2025
Will the SEC Approve ETF Staking?
Cboe’s proposal aims to amend the ETH ETP rules, allowing 21Shares to stake a portion of the Ethereum held in the ETF. This move makes 21Shares the first issuer to seek approval for Ethereum ETF staking in the US. The filing states that 21Shares will maintain sufficient liquidity in the trust for redemptions, will not market the ETF as a staking service provider, and will not guarantee specific returns or claim staking expertise in communications with investors.
Historically, the SEC has been hesitant to approve staking in ETFs, citing potential violations of securities laws. However, SEC Commissioner Hester Peirce, widely known as “Crypto Mom” for her pro-innovation stance, is now leading the SEC’s newly established Crypto Task Force. Within just two days of its formation, the SEC repealed Staff Accounting Bulletin 121, easing crypto custody rules for banks. Peirce also introduced a 10-point roadmap focused on regulatory clarity while ensuring investor protection.
This shift in approach signals a more open stance on crypto, a stark contrast to the stricter policies seen under former SEC Chair Gary Gensler. With this regulatory shift, the likelihood of the SEC approving staking within Ethereum ETFs in the near future has significantly increased.
The SEC has 240 days to assess and rule on the proposal. If approved, Ethereum ETFs with staking features could provide new income streams, increasing their appeal to investors and potentially boosting ETH prices. Additionally, the upcoming Pectra upgrade could further support adoption and contribute to Ethereum’s overall growth.
