Ethereum ETF
21Shares Ethereum ETF Staking proposal acknowledged by SEC
The U.S. Securities and Exchange Commission (SEC) has acknowledged a 19b-4 filing from Cboe BZX Exchange, submitted on behalf of 21Shares, seeking approval to stake Ethereum held within the 21Shares Core Ethereum ETF.
On Feb. 20, the SEC published a statement acknowledging receipt of the 21Shares’ Ethereum (ETH) ETF staking proposal following its review of the filing from Cboe BZX Exchange. If approved, this would be the first time an Ethereum ETF offers staking in the United States.
By staking ETH, the plan seeks to enable the ETF to produce extra profits, which investors would then receive. The document states that all staked ether will be owned by the trust, setting it apart from models such as staking-as-a-service or delegated staking that have previously encountered regulatory opposition.
The SEC has always had a stringent policy regarding proof-of-stake assets. The government categorized staking-related activities as securities under former Chair Gary Gensler, which led to many Ethereum ETF issuers removing staking from their registration statements.
But under the Trump administration, the SEC has adopted a more pro-crypto stance, creating a dedicated crypto task force and reconsidering the classification of some tokens as securities. A more transparent legal framework for staking, according to analysts, may encourage wider adoption, especially among institutions looking for more yield options in the digital asset market.
The proposal coincides with an increase in institutional demand for Ethereum exchange-traded funds. According to recent 13F filings, ownership in ETH ETFs increased from 4.8% to 14.5% in Q4 2024, whilst ownership of Bitcoin ETFs decreased marginally from 22.3% to 21.5%. ETH ETF staking is also seen by many as a major catalyst that might boost the price of ETH.
In a related development, the SEC’s recent acknowledgment of Bitwise, 21Shares, and Grayscale’s registrations for Ripple (XRP) spot ETFs sparked speculation about a broader adoption of crypto-based ETFs. Given the growing regulatory shifts, the next few months could be critical for Ethereum, XRP, and other digital assets seeking institutional adoption.
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21Shares has announced that it is bringing down the curtain on its Bitcoin and Ethereum futures exchange-traded funds (ETFs). The issuer is eyeing March 28 as a tentative date for the liquidation of both ETFs amid a wave of new filings in the US.
21Shares Set To Liquidate Bitcoin and Ethereum ETFs
According to an announcement, crypto ETF issuer 21Shares has disclosed plans to ditch its Bitcoin and Ethereum futures ETFs. Per the announcement, the affected ETFs are the ARK 21Shares Active Bitcoin Ethereum Strategy ETF and the ARK 21Shares Active On-Chain Bitcoin Strategy ETF.
While the press release did not give clear reasons for the liquidations, it hinged its decision on a periodic review of its offerings. The statement cited a need to align existing product lineups with market dynamics and clients’ needs in a changing landscape.
However, pundits say the liquidations are a result of jarring ETF outflows in recent months.
Shareholders can sell their holdings up until March 27, a date touted as the last trading day for both ETFs. 21Shares plans to put the final nail in the coffin for both ETFs on March 28, liquidating all remaining assets.
“Shareholders who continue to hold shares of a Fund on the Fund’s Liquidation Date will receive a liquidating distribution with a value equal to their proportionate ownership interest in the Fund,” read the press release.
Increased ETF Activity In The Cryptoverse
Despite the wave of outflows, the ETF space is sizzling with frenetic activity. Buoyed by impressive returns, 21Shares slashed fees to 0.49% for its Bitcoin Ethereum Core ETPs.
Bitwise has rolled out its OWNB ETF to track companies holding Bitcoin on their balance sheets. Bitcoin ETF investors continue to put their faith in offerings in the face of price amid Rex Shares launching the first Bitcoin Corporate Bond Convertible ETF
Outside of Bitcoin, several issuers have filed for XRP, HBAR, DOGE, and AVAX ETFs with the US SEC. For Ethereum investors, CBOE has applied to the SEC to approve staking in Fidelity’s ETH ETF.
Aliyu Pokima
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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The Cboe BZX Exchange has proposed a rule change to enable options trading on spot Ethereum exchange-traded funds (ETFs). This move follows the rapid growth of Ethereum-based investment products and could lead to increased liquidity and price stability.
Analysts suggest that expanded derivatives trading could influence ETH price, driving it toward $4,000 in the coming weeks.
Cboe Proposes Rule Change for Ethereum ETF Options
In a recent filing, the Cboe BZX Exchange submitted a proposal to amend Rule 19.3. The amendment would allow the exchange to list and trade options on spot Ethereum ETFs. The filing specifically mentions the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust. It also extends to any trust that holds ether.
The proposal follows a similar filing by NYSE American, which is currently awaiting approval from the U.S. Securities and Exchange Commission (SEC). If approved, Ethereum ETF options trading could become a new financial tool for investors, similar to the options available for spot Bitcoin ETFs since November 2024.
The Cboe BZX filing stated,
“Offering options on the Ethereum Funds will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to spot ether as well as a hedging vehicle to meet their investment needs in connection with ether products.”
More so, the crypto ETF industry has been growing rapidly. Notably, last week, the US SEC granted accelerated approval for the dual Bitcoin and Ethereum Bitwise ETFs. This decision marks a significant step in expanding regulated crypto investment options. However, the ETF still requires S-1 registration approval before trading can begin.
Ethereum ETFs See Record Trading Volume
Ethereum ETFs have experienced growing investor interest since their launch in July 2024. On Monday, the nine spot Ethereum ETFs recorded a total trading volume of $1.5 billion. This surpassed the previous record of $1.22 billion set on December 19. The surge in activity came during a broader crypto market decline.
The increased trading volume reflects heightened institutional interest in Ethereum-based products. It also signals a growing demand for exposure to Ethereum through regulated investment vehicles. The Cboe’s proposal for options trading could further increase market activity by providing additional hedging and investment strategies.
Options Trading Could Boost Liquidity
The introduction of options trading on Ethereum ETFs may lead to greater liquidity in the market. Options allow investors to hedge their positions and manage risk, making them a valuable tool for institutional traders. Increased derivatives trading could also reduce price volatility over time by improving price discovery mechanisms.
Options on spot Bitcoin ETFs have been available since November 2024. Their launch provided institutional investors with additional exposure to Bitcoin while offering retail traders new opportunities.
If Ethereum ETF options gain approval, they will follow a similar path, contributing to Ethereum price rally.
Ethereum Price Action and Potential for $4,000 Target
Ethereum is currently trading at approximately $2,741, with a 24-hour trading volume of $38.8 billion. Crypto analysts have suggested that Ethereum could reach $4,000 in the coming weeks, citing increased ETF inflows and broader adoption.
The potential approval of Ethereum ETF options could further strengthen ETH price market momentum.
However, a recent CoinGape analysis highlighted the importance of reclaiming the $2,800 level for Ethereum to maintain its bullish outlook. Failing to do so could trigger increased selling pressure, pushing ETH into a deeper bearish trend.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Ethereum spot ETFs mark a historic milestone with a $332.92 million daily inflow, surpassing Bitcoin ETFs amid the ETH price surge.
The latest data from SoSoValue reveals that Ethereum (ETH) spot ETFs have recorded $332.92 million in daily net inflows as of Nov. 29, outpacing Bitcoin (BTC) spot ETFs’ $320.01 million for the first time since inception.
This development coincides with Ethereum’s price surge of over 3% in the last 24 hours, while Bitcoin showed minimal movement during the same period.
Ethereum ETF performance breakdown
The first spot Ethereum ETFs in the U.S. began trading on July 23. These ETFs, approved by the U.S. Securities and Exchange Commission, include products from well-known financial institutions like BlackRock, Fidelity and Grayscale, among others. They provide investors exposure to Ethereum’s price without needing to directly hold the cryptocurrency.
Here’s a look at how those ETFs are performing today:
- BlackRock’s iShares Ethereum Trust ETF, trading on NASDAQ, emerged as the top performer. It boasts $250.39 million in daily net inflow. The fund’s cumulative net inflow stands at $2.1 billion, with net assets of $2.5 billion.
- Grayscale Ethereum Mini Trust, listed on NYSE, recorded $3.39 million in daily inflows, contributing to its substantial cumulative net inflow of $420.15 million. The fund currently maintains a 0.35% ETH share with a market price of $33.84.
- Fidelity Ethereum Fund, on the Cboe Exchange, secured $79.44 million in daily inflows, pushing its cumulative total to $824.23 million. The fund trades at $35.88 with a 0.22% ETH share.
Bitcoin ETFs maintain strong presence
Despite being overtaken in daily flows, Bitcoin spot ETFs demonstrate strong performance. BlackRock’s iShares Bitcoin Trust ETF recorded $137.49 million in daily net inflow. IBIT’s cumulative net inflow has reached $31.74 billion, commanding a 2.51% BTC share.
Fidelity Wise Origin Bitcoin Fund, or FBTC, followed with $106.46 million in daily inflow, while Bitwise Bitcoin ETF, or BITB, secured $26.54 million.
Notably, Grayscale Bitcoin Trust showed no daily inflow, maintaining its cumulative position at -$20.52 billion.
The total value traded for Ethereum ETFs reached $313.61 million, while Bitcoin ETFs recorded a higher volume of $2.51 billion. The cumulative total net inflow stands at $573.32 million for Ethereum ETFs and $30.70 billion for Bitcoin ETFs.
The first spot Bitcoin ETF was approved and launched in Canada by Purpose Investments. It began trading on the Toronto Stock Exchange (TSX) under the ticker BTCC on Feb. 18, 2021. This was a significant milestone, as it marked the world’s first-ever ETF directly holding Bitcoin.
In the U.S., however, the SEC has not yet approved a spot Bitcoin ETF as of November 2024. The U.S. market currently only has futures-based Bitcoin ETFs, which started with the ProShares Bitcoin Strategy ETF (BITO) in October 2021.
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