CBOE Pushes for Ethereum ETF Staking Amidst Market Downturn

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Coinspeaker
CBOE Pushes for Ethereum ETF Staking Amidst Market Downturn

The Chicago Board Options Exchange (CBOE) has filed a proposal to enable staking for the Fidelity Ethereum ETF (FETH), bringing attention of investors to the world’s second-largest digital asset.

The filing, published on March 11, outlines the exchange’s request to amend previous filings to accommodate staking, a process that allows investors to earn passive income by helping secure the Ethereum network.

The proposal now awaits acknowledgment from the US Securities and Exchange Commission (SEC), which will then trigger a 240-day review period for potential approval.

Fidelity’s Ether ETF has already amassed $1.45 billion in net inflows since its launch in July 2024, despite the absence of staking incentives. The overall spot Ethereum

ETH
$1 945

24h volatility:
2.1%

Market cap:
$229.38 B

Vol. 24h:
$39.07 B

market has drawn over $2.6 billion in net inflows, according to the data by SoSoValue.

Regulatory Shifts Could Influence Approval

Historically, the SEC, especially under former Chair Gary Gensler, has been hesitant to approve staking in Ethereum ETFs. To avoid regulatory scrutiny, issuers excluded staking options from registration statements.

However, the recent US presidential election, which saw Donald Trump win in November, has led to a more crypto-friendly stance among regulators.

Interestingly, SEC Commissioner Hester Peirce also expressed her support for staking-enabled Ethereum ETFs in December 2024. Meanwhile, Lido DAO contributor Kean Gilbert recently predicted that the market could see staking-integrated ETFs by the end of 2025.

If approved, the proposal could drive greater institutional participation in Ethereum-based products, potentially leading to a price rally for ETH.

Ethereum Price Faces Selling Pressure

Amid these developments, the Ethereum price has faced an 8% drop on Tuesday, trading around $1,865 at the time of writing. The second-largest cryptocurrency currently holds a market capitalization of $227.4 billion, according to CoinMarketCap.

On the daily ETH price chart, RSI is hovering near oversold territory. This suggests that the cryptocurrency is approaching a potential rebound zone.

Ethereum is also testing the lower Bollinger Band at around $1,778, which also acts as a key support level. A break below this level could push ETH towards $1,750, while resistance remains near the midline of the Bollinger Bands at around $2,323.

Despite short-term volatility, analysts remain optimistic about Ethereum’s long-term trajectory. Crypto influencer Crypto Rover believes that ETH’s momentum is at an all-time low, making it an ideal time to buy.