The issue of Ethereum staking in exchange-traded funds (ETFs) has been brought up again by SEC Commissioner Hester Peirce.
The US Securities and Exchange Commission (SEC) had previously banned staking on such types of financial products, which meant the major issuers had to change their applications.
Peirce told Zack Guzman in an interview that adding Ethereum staking to ETFs might still be possible in the future, even though it was initially not allowed. Many people in the cryptocurrency industry now have fresh possibilities because of this.
Ethereum’s Shift To Proof-of-Stake
Ethereum ETFs have had an intriguing history. Staking became an important part of Ethereum’s environment after it switched to Proof-of-Stake (PoS) through The Merge. But companies like Grayscale, Fidelity, and 21Shares had to leave staking out of their plans for spot ETH ETFs.
This is why the SEC gave these ETFs their first approval on May 23, but without the holding feature.Concerns have been made about the appeal of Ethereum ETFs since their staking plans were taken away. Some investors may choose straight ETH investments over ETFs that don’t offer staking rewards.
If you allow betting in ETFs, they might become more popular in the financial world and Wall Street investors might make more money.Even though Commissioner Peirce was positive, it is still not clear when Ethereum staking in ETFs will be looked at again.
Right now, the main goal is to get trade permission for spot ETH ETFs from the SEC. Nate Geraci, head of ETFStore, first said that the approval would happen on July 15, but that date has now passed.
July 23 has been chosen as the new date.While people are watching, changes keep happening. For example, 21Shares just recently added a 0.21% sponsor fee to its S-1 file.
