US Securities and Exchange Commission Has Postponed Its Decision on the Staking Feature for the 21Shares Spot Ethereum ETF

This delay marks another extension in a string of regulatory holds targeting cryptocurrency exchange-traded funds.

The US Securities and Exchange Commission has again postponed its decision on the application for a spot Ethereum ETF with a staking feature from 21Shares. This marks another delay in a series of regulatory holds on cryptocurrency exchange-traded funds.

The move keeps 21Shares in a holding pattern, though it continues to operate a live spot Ethereum ETF in the US market.

The Ethereum ETF by 21Shares remains under review as the SEC extends the evaluation period for adding staking to these funds. Earlier this year, the regulator required ETF issuers to remove staking before securing initial approvals. However, there is growing interest in including staking in these funds.

The deferral on the 21Shares Ethereum ETF comes as other issuers of ETH ETF products press for approval to include staking features in their offerings.

This follows the SEC’s acknowledgment of BlackRock’s proposal for In-Kind redemptions in its Ethereum ETF application. That move, while not an approval, signals interest in ETH-related funds.

The Ethereum ETF market has grown more competitive as firms position their offerings for long-term gains. Previously, issuers had to remove staking options and In-Kind redemption features to gain approval.

The evolving stance now opens potential pathways for upgraded product designs.

21Shares may gain a strategic edge if the SEC approves staking, but all ETH ETF issuers stand to benefit from regulatory clarity. The ongoing updates indicate increasing institutional demand and rising product complexity. An approval could reshape Ethereum ETF structures across all current applicants.

This news follows the SEC’s deferral on the 21Shares Solana ETF proposal.

The administrative extensions on the 21Shares spot Ethereum ETF and Solana ETF applications come amid broader scrutiny of crypto-linked products by the SEC.

This marks a third deferral for the Solana ETF proposal, showcasing the agency’s persistent approach toward emerging digital asset ETFs.

While not directly related to the Ethereum ETF matters, this delay further signals the SEC’s cautious timeline.

The Solana ETF proposal’s extended review also complicates 21Shares’ expansion efforts in the US crypto ETF space.

However, the firm maintains a prominent role among crypto ETF issuers, keeping market attention on its product updates.

These consistent deferrals add weight to the broader regulatory atmosphere affecting digital asset funds.

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