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.
Crypto Staking Regulation Evolves
The SEC once targeted staking, suing Kraken in 2023 over unregistered services. Last year’s ETF approvals skipped staking for speed. Now, a new administration seems more open. The SEC’s review of 21Shares and Grayscale filings, with public comments invited, hints at a thaw in crypto staking regulation.
What’s Ahead for ETH ETFs?
Approval isn’t guaranteed. The SEC must clear exchange rules (19b-4) and issuer filings (S-1), possibly taking months. Success could see Ethereum ETF staking attract billions more—current inflows hit $2.73 billion despite Grayscale’s drag. Higher yields might spark a price rally, especially if staking reduces liquid supply.
Ethereum’s price sensitivity exceeds Bitcoin’s due to lower exchange-held supply (10.3% vs. 11.7%) and net-negative issuance post-Merge. Staking via ETFs could amplify this, driving ETH higher.
The SEC reviewing Ethereum ETF staking filings is a turning point. With 2.5 million ETH in ETFs, staking could reshape demand and lift ETH’s price.
