What to know:

• Cboe has filed to permit staking in spot ether ETFs, which could signify a change in SEC policy under new leadership.
• Previously, the SEC blocked staking in ETFs, but with Commissioner Mark Uyeda as acting chair, analysts predict a rule change this year.
• In addition to ether staking, firms are broadening ETF offerings to encompass digital assets like Solana, XRP, Sui, and Aptos.

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The national securities exchange Cboe has approached the U.S. Securities and Exchange Commission (SEC) requesting the allowance of staking in various spot ether (ETH) exchange-traded funds (ETFs), resulting in a 2% increase in the token’s price over the last 24 hours.
Prior to the funds launching in July, several issuers included staking in their applications. However, the SEC later required the feature’s removal since it was not permitted at that time.

Cboe is linked with five ether ETF issuers, such as Fidelity, Franklin Templeton, VanEck, and Invesco/Galaxy. On Tuesday, it submitted amended 19b-4 documents for the Fidelity Ethereum Fund (FETH) and the Franklin Ethereum ETF (EZET) to allow staking.

This initiative follows the exit of former SEC chair Gary Gensler, who departed shortly before the inauguration of crypto-friendly President Donald Trump in January. Trump’s SEC nominee, Paul Atkins, has yet to have a hearing or confirmation vote in the Senate. Until Atkins is sworn in, Commissioner Mark Uyeda remains the acting chair. Under Uyeda, the SEC has taken several favorable actions concerning other crypto-related ETF applications, creating optimism that staking may be viewed positively by Commissioners.

Cboe’s request is likely to receive approval, according to James Seyffart, an ETF analyst at Bloomberg Intelligence. “There are still details to be decided, but we expect the SEC will permit staking in ETFs this year,” he stated.

In addition to introducing staking, companies have sought to launch ETF products for various digital assets. Recently, companies have established Delaware entities for Sui (SUI) and Aptos (APT), while the SEC is already assessing multiple applications for Solana (SOL) and XRP (XRP), among others.