SEC Reviews Ethereum ETF Staking Filings

The U.S. Securities and Exchange Commission (SEC) is evaluating filings to allow Ethereum ETF staking, a step that could enhance investor returns. In February 2025, issuers updated spot ETH ETF applications to include staking, reversing a prior ban. This shift in crypto staking regulation could influence Ethereum’s price as demand grows.

Ethereum ETF Staking: The Latest Push

This month, the SEC acknowledged key filings. On February 12, 2025, Cboe filed to amend 21Shares’ spot ETH ETF to stake its Ethereum holdings, recognized by the SEC on February 19. NYSE Arca followed on February 14, seeking staking for Grayscale’s Ethereum ETFs. X posts hint Fidelity is also in the mix, though unconfirmed in public filings.

In May 2024, the SEC approved spot ETH ETFs but excluded staking, citing security concerns. Now, issuers aim to leverage Ethereum’s proof-of-stake rewards—around 3-4% annually—to boost yields. Total ETH holdings in these ETFs stand at roughly 2.5 million ETH as of mid-February, per industry data, reflecting $7-8 billion at current prices.

Staking and ETH Price Impact

Staking locks ETH to secure the network, earning rewards. For ETFs, this could draw more investors, especially after the Bybit hack on February 21, 2025, lost $1.46 billion, exposing centralized risks. With staking, Ethereum ETF staking could tighten supply—28% of ETH is already staked—potentially lifting ETH’s price, now hovering near $2,700 amid Bitcoin’s dip below $90,000.

February saw mixed flows. Grayscale’s ETHE led outflows, shedding $39.2 million on August 2 (the largest since then) and $10.33 million on February 20, totaling $3.99 billion historically. Yet, ETH ETFs saw $12.58 million in inflows on February 11, suggesting selective demand. Staking approval could reverse outflows, boosting inflows and ETH’s value.