In a recent update, we disclosed that the US Securities and Exchange Commission (SEC) had acknowledged the receipt of a 19b-4 filing submitted by Cboe BZX Exchange. According to the details, this filing seeks approval for staking in the 21Shares Core Ethereum ETF. Multiple analysts, including Bloomberg’s James Seyffart, pointed out that this is the first-ever ETF to file for permission for Ethereum staking. Pending the official decision, Fox Business journalist Eleanor Terrett has disclosed that the SEC has shown interest in staking. According to her, this information was shared by a source who recently spoke to the Agency. To explain this further, Terrett disclosed that the SEC had asked the industry for a memo containing comprehensive information on different types of staking and their benefits.
Based on the information, the SEC could release a framework to guide its operation in the future. While the Agency was said to be engaging in this topic enthusiastically, officials from the Division of Trading and Markets were also reported to have participated in a staking Webinar alongside some key figures in the industry.
Source: Eleanor Terrett
The Previous Recognition of Staking
The ongoing development appears to be a huge shift from the previous dispensation when staking-related activities were recognized as securities. In a previous post, former SEC chair Gary Gensler highlighted that cryptos that stake their coins could pass a test (Howey test) used by the court to ascertain their security status. According to him, the offering of staking services has a lot of similarities with lending. Meanwhile, crypto lending products have been asked to register with the Agency. Concerning this, many ETH ETF issuers removed staking from their registration statements. With the ongoing development, an approval could significantly impact the price of ETH. According to experts, staking ETH would technically reduce the circulating supply and appreciate the price.
The recent filing acknowledgment comes after the CBOE earlier submitted a proposal to the SEC to “amend the ARK 21Shares Bitcoin ETF (ARKB) and the 21Shares Core Ethereum ETF (CETH).” As reviewed in our recent publication, the proposal was meant to improve operational efficiency while enhancing liquidity for institutional investors managing the funds.
Ethereum (ETH) Price Analysis
ETH has surged by 3% in the last 24 hours to trade at $2.8k following this report. According to market data, the asset’s market dominance has steadily surged to 10.5%. However, its 24-trading volume marginally declines to $13.7 billion.
Earlier, an analyst identified as Carl Runefelt reported that ETH was forming a bullish pattern on the daily time frame. At that time, he highlighted that the asset could make a step above the $3,000 price level once buyers drag the price above the $2,800 zone. Joining the ETH price analysis, a prominent crypto analyst called Crypto Rover also predicted that the asset could hit $15k. As featured in our recent coverage, the analyst expects ETH to likely surge above the $7000 level in a short time.