CBOE Files Proposal for Staking in Fidelity Ethereum ETF
The Chicago Board Options Exchange (CBOE) has submitted a proposal to allow staking for the Fidelity Ethereum ETF (FETH). This move aims to attract investors to Ethereum, the second-largest cryptocurrency.
- The filing requests amendments to accommodate staking, enabling passive income for investors securing the Ethereum network.
- The proposal is pending acknowledgment from the US Securities and Exchange Commission (SEC), which will start a 240-day review period.
- Fidelity's Ether ETF has gained $1.45 billion in net inflows since its July 2024 launch, despite lacking staking incentives.
- The overall Ethereum spot market has seen over $2.6 billion in net inflows.
Regulatory Implications
- The SEC has historically been cautious about approving staking in Ethereum ETFs, especially under former Chair Gary Gensler.
- Recent political shifts may influence a more favorable regulatory environment for crypto.
- SEC Commissioner Hester Peirce supports staking-enabled Ethereum ETFs.
- Market predictions suggest the introduction of staking-integrated ETFs by the end of 2025.
Approval of the proposal could enhance institutional participation in Ethereum products, potentially impacting ETH prices positively.
Current Market Status
- As of now, Ethereum's price has dropped 8% to around $1,865, with a market capitalization of $227.4 billion.
- The price chart indicates oversold conditions, suggesting a potential rebound.
- Ethereum is testing key support at around $1,778; a break below could lead to further declines towards $1,750.
- Resistance lies near $2,323.
Analysts remain optimistic about Ethereum's long-term prospects, with Standard Chartered forecasting a possible rise to $14,000 by the end of 2025 if staking approval boosts institutional adoption.