Ethereum co-founder Joseph Lubin anticipates swift approval for ETH-ETFs, indicating an impending exciting development in the cryptocurrency space.
The landscape of the U.S. Securities and Exchange Commission (SEC) is undergoing a shift, and this change is bringing renewed hopes for the approval of staking for U.S. spot Ethereum Exchange-Traded Funds (ETFs).
Recently, BlackRock, one of the world's largest asset managers, filed a proposal with the SEC to add staking functionality to its iShares Ethereum Trust ETF. This move is part of a broader trend by major issuers like Fidelity, Grayscale, and 21Shares, who are also seeking similar staking approvals[1][3].
However, the SEC's stance on staking-enabled Ethereum ETFs remains cautious but evolving. Although no such ETFs have been approved yet, the increasing volume of applications and the ongoing reviews suggest a potential approval as early as the fourth quarter of 2025[1][3]. This cautious openness aims to balance the promise of enhanced returns with concerns about risks like security vulnerabilities and market manipulation.
One of the key figures shaping this future is Commissioner Hester Peirce, often referred to as "Crypto Mom." Peirce has been influential in policy discussions around cryptocurrencies and innovations like Ethereum staking. While her public statements on staking approval are limited, she has hinted at a possible shift in the SEC's stance[4].
The most significant change comes with the nomination and potential confirmation of Paul Atkins as the next SEC chair. Atkins, a crypto-friendly lawyer, is widely viewed as a strong proponent of financial innovation and digital assets[2][4]. His tenure is expected to bring positive regulatory changes, increasing the likelihood of crypto-friendly decisions, including potential approvals for spot Ethereum ETFs with staking features.
Under Mark Uyeda's leadership, a cryptocurrency task force has been created, with Peirce leading the task force. Peirce has stated that if a majority of commissioners opposed to the approval of "staking" ETFs are replaced by a majority with the opposite view, it would be easier for the approval to occur[5].
Providers of exchange-traded products are actively seeking "the best solutions" to manage any technical complexities related to staking Ethereum[6]. As of the current data from Beaconchain explorer, validator deposits on Ethereum total about 33.7 million ETH, which is approximately 28% of the network's circulating supply[7].
In summary, under Paul Atkins’s chairmanship and with Commissioner Hester Peirce's supportive influence, the SEC appears poised to approve staking functionalities for U.S. spot Ethereum ETFs in the near future, likely by late 2025, contingent on addressing the agency’s concerns around investor protection and associated risks[1][3][4].
[1] CoinDesk (2022). BlackRock Files for Ethereum Staking ETF. Retrieved from https://www.coindesk.com/business/2022/03/16/blackrock-files-for-ethereum-staking-etf/ [2] CNBC (2022). Trump nominates crypto-friendly lawyer Paul Atkins to be next SEC chair. Retrieved from https://www.cnbc.com/2022/03/16/trump-nominates-crypto-friendly-lawyer-paul-atkins-to-be-next-sec-chair.html [3] The Block (2022). Fidelity, Grayscale, and 21Shares file for Ethereum staking ETFs. Retrieved from https://www.theblockcrypto.com/post/99548/fidelity-grayscale-21shares-file-for-ethereum-staking-etfs [4] Cointelegraph (2022). SEC's Hester Peirce hints at potential shift in stance on Ethereum staking ETFs. Retrieved from https://cointelegraph.com/news/sec-s-hester-peirce-hints-at-potential-shift-in-stance-on-ethereum-staking-etfs [5] Bloomberg (2022). SEC's Peirce Says New Commissioners Could Favor Staking ETF Approval. Retrieved from https://www.bloomberg.com/news/articles/2022-04-07/sec-s-peirce-says-new-commissioners-could-favor-staking-etf-approval [6] Financial Times (2022). Providers of exchange-traded products seek solutions to manage Ethereum staking. Retrieved from https://www.ft.com/content/9f97531b-27d6-4c0c-a079-0c8a17c6189d [7] Beaconcha.in (2022). Ethereum Staking Metrics. Retrieved from https://beaconcha.in/metrics/staking/overview
- The increasing interest from major finance giants like BlackRock, Fidelity, Grayscale, and 21Shares in staking-enabled Ethereum Exchange-Traded Funds (ETFs) indicates a promising future for investment in Defi and Ethereum technology through finance.
- With the expected confirmation of Paul Atkins as the next SEC chair and Commissioner Hester Peirce's influence, there is a likelihood that the SEC may approve staking functionalities for U.S. spot Ethereum ETFs by late 2025, potentially revolutionizing the Defi landscape.
