The US Securities and Exchange Commission (SEC) has delayed its decision on the proposal by 21Shares to add staking services to its spot Ethereum ETF proposal. This is not a new move for the US SEC, considering it has postponed decisions on many crypto-linked ETF products over the past few weeks. It is worth noting that 21Shares is one of the firms with an active spot Ethereum ETF product trading in the United States.
21Shares and Staking on Ethereum ETF: The Delay Trend
With the extension of this review period on whether to allow the staking product or not, 21Shares does not have a visible disadvantage overall. However, an eventual approval may turn around the offering’s fortunes and make it more attractive to investors.
Per the asset managers ‘ crypto ETF products, 21Shares has remained on the headlines almost all week. As reported earlier by CoinGape, the SEC delayed its decision on the 21Shares Solana ETF proposal, further elongating the timeline for any potential approval.
In reality, the launch of spot Ethereum ETF products about a year ago came with a lot of consensus on the part of issuers. All issuers had to drop their staking bid to boost the Gary Gensler-led SEC’s approval of the offering. In addition, the push for In-Kind redemptions was also suppressed.
Now, beyond 21Shares, other issuers of ETH ETFs are currently pushing for staking to be allowed on the product. The delay in the staking on the 21Shares Ethereum ETF came barely 24 hours after the markets regulator acknowledged BlackRock’s In-Kind redemption proposal for its Ethereum fund.
While this acknowledgment does not equate to approval, it sets Ethereum on the regulators’ radar amid growing demand from institutional investors.
This is a developing story, please check back for updates!!!
Godfrey Benjamin
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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