CBOE files for 21Shares ETF staking as Ether climbs 3.5%

Ether's (CRYPTO:ETH) price experienced a 3.5% jump following the CBOE BZX Exchange's filing on behalf of asset manager 21Shares to incorporate staking into its spot Ether exchange-traded fund (ETF). 

Ether (ETH) initially surged to $2,776 before retracting to $2,729, according to CoinMarketCap. 

The Cboe BZX Exchange submitted a proposal to the SEC to enable staking for the 21Shares Core Ethereum ETF. 

The exchange requested approval to stake ether held within the fund. 

The filing emphasises that allowing the Trust to stake its Ether would benefit investors and enhance the Trust's ability to track returns associated with holding Ether.

21Shares assures it will maintain sufficient liquidity to meet redemption demands. 

21Shares aims to be the first to offer Ether staking within a spot Ether ETF product, pending approval. 

The company plans to stake a portion of the Trust's Ether periodically through reliable staking providers, as detailed in a February 12 filing with the SEC.

21Shares will not market itself as a staking service provider or guarantee specific returns and claims no particular expertise in staking. 

Crypto analysts are optimistic, as approval could make Ether ETFs more appealing to institutions.

Bloomberg Intelligence ETF analyst James Seyffart noted that this is the first time an ETF filing with the SEC has incorporated staking. 

The filing outlines the exchange's request to allow the trust to stake its Ethereum holdings.

The proposal now awaits the SEC's acknowledgment before a 240-day window opens for a decision.

At the time of reporting, the Ethereum (ETH) price was $2,706.10.