Ethereum ETFs Apply for Permission for ETH Staking

Ethereum (ETH) offers the possibility of passive income through staking. But Ethereum ETFs in the USA are not yet allowed to be staked. Now the SEC is supposed to reassess the situation for ETH.

When Ethereum ETFs made their stock market debut in the US last July, there was a significant downside

The US Securities and Exchange Commission (SEC) had expressly prohibited Ethereum ETFs from including ETH staking in their offerings. Ethereum staking offers the chance to earn interest on deposited Ethereum. Staking protects network security and is currently rewarded with an annual interest rate of almost three percent in ETH. However, anyone who invests money in Ethereum ETFs is forced to forego the staking bonuses.

A change is emerging here that could have far-reaching consequences for Ethereum. Last week, 21 Shares’ Ethereum ETFs first applied to the SEC to allow ETH staking. Grayscale’s Ethereum ETFs then followed suit, as Bloomberg expert James Seyffart documented on X. If the SEC approves the Ethereum ETF staking applications, this investment opportunity in ETH would become more attractive than before due to interest. Seyffart believes an SEC decision in the final quarter of 2025 is realistic, but also points to influences from the Trump presidency, which could have an accelerating effect.

According to SoSo ‘s data, Ethereum ETFs hold a good 3 percent of the ETH currently in circulation. ETH staking services from the crypto industry such as Lido have collected almost 30 percent of all circulating Ethereum. If Ethereum ETFs are also allowed to advertise staking interest in the future, market shares could shift and, in the best case, new investor groups could be opened up. Model calculations are also interesting in this context , which suggest that Ethereum staking could soon beat the US base rate in terms of interest returns.

Ethereum Pectra Upgrade Scheduled for April 8th

Meanwhile, Ethereum’s Pectra upgrade is scheduled to launch on April 8. Pectra is also expected to be price-relevant thanks to a whole series of improvements in the handling of ETH. A second upgrade planned for 2025 is now called Fusaka. Prominent ETH developers are still arguing about how far the intended reform of the Ethereum Virtual Machine (EVM) should go with the Fusaka upgrade.

The EVM as a standard module for decentralized finance (DeFi) has remained unchanged for years. Opponents argue that reforming the EVM is a risk due to the complex challenges. Supporters point to the need for Ethereum to catch up in terms of user-friendliness and proximity to the financial industry.

Conclusion: Ethereum will be in focus in 2025 through ETF staking and upgrades

Ethereum, the most important global crypto currency after Bitcoin, has not been able to convince in terms of price so far this year and investors are therefore keeping a close eye on what is happening in the background. The approval of staking for Ethereum ETFs would be a positive sign for ETH.

The technological advances planned through the Pectra and Fusaka upgrades to Ethereum also have the potential to turn the price curve of ETH into positive territory. But for the moment, all of this remains a long way off, which clever investors like you are already taking into account in their Ethereum strategies.

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(Featured image by Bastian Riccardi via Unsplash)

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