The U.S. securities exchange Cboe BZX has recently filed a request with regulators to allow staking functionality in Fidelity’s Ethereum ETF (exchange-traded fund). If approved, this would mark another significant move following Cboe’s February push to integrate staking into the 21Shares Core Ethereum ETF, further accelerating the convergence of traditional financial instruments and cryptocurrency yield mechanisms.
According to the March 11 filing, Cboe aims to enable the Fidelity Ethereum Fund (FETH) to stake “all or a portion of the Trust’s ether through one or more trusted staking providers” to generate additional returns. Currently, Fidelity’s Ethereum ETF ranks among the top products in its category, with nearly $1 billion in assets under management. The addition of staking could significantly enhance its market competitiveness. Ethereum staking allows investors to post ETH as collateral with validators in exchange for an annual yield of approximately 3.3% (denominated in ETH). While this feature has traditionally been limited to on-chain ecosystems, the integration of staking into Ethereum ETFs could provide traditional investors with easier access to such收益 opportunities.
Cboe’s proposal still requires final approval from the U.S. Securities and Exchange Commission (SEC). Notably, since President Trump began his second term in January, the SEC has adopted a more lenient stance toward cryptocurrency regulation, having already acknowledged over a dozen filings related to crypto ETF rule changes. In addition to staking, Cboe has proposed enabling in-kind creations and redemptions for Fidelity’s Bitcoin and Ethereum ETFs, as well as supporting the launch of XRP ETFs by WisdomTree and others. These moves indicate that exchanges are actively seeking to capitalize on the institutionalization of crypto assets through diversified product offerings.
Industry analysts suggest that the trend of integrating staking into Ethereum ETFs could not only enhance the yield appeal of such products but also push more institutions to optimize their investment strategies. For instance, the staking proposal for the 21Shares Core Ethereum ETF has already sparked discussions about “yield-generating crypto funds.” Other proof-of-stake blockchain tokens like Solana may follow Ethereum ETF’s model, driving broader financial innovation. However, regulatory uncertainty remains a significant hurdle—the SEC’s ambiguous stance on whether Ethereum qualifies as a security could complicate the approval process.
As Ethereum ETFs gradually shift from “spot holding” to “active yield generation,” their role as a bridge between the crypto market and traditional finance is expected to strengthen. Nonetheless, the realization of this transformation hinges on the final decision of regulators.
