CBOE Files with SEC to Add Staking in Fidelity Ethereum ETF

Highlights:

• CBOE files with US SEC seeking approval to incorporate staking into FETH. 
• SEC’s shift on staking in ETFs follows changes in leadership and regulatory approach. 
• Ethereum price drops but the bullish pattern suggests a potential breakout and upward movement.

On March 11, the Chicago Board Options Exchange (CBOE) filed a 19b-4 with the United States Securities and Exchange Commission (SEC), seeking approval to incorporate staking into the Fidelity Ethereum Fund (FETH). Staking requires locking ETH to secure the Ethereum network and earn rewards. If approved, a staked ETH ETF could provide investors with extra income beyond traditional spot Ethereum ETFs.

🚨 NEW: Cboe BZX Exchange files to add staking to Fidelity's $ETF fund pic.twitter.com/cAAlKQEXJY

— MrRebel.eth (@rebelethpromos) March 11, 2025

The filing sets strict rules for staking. Only the Ethereum held by the fund will be staked, and no external assets will be pooled. The sponsor won’t advertise staking services, guarantee returns, or seek assets from third parties. The goal of staking is to protect the fund’s assets, enhance network security, and provide returns to shareholders. 

According to the filing:

“Allowing the Trust to stake its ether would benefit investors and help the Trust to better track the returns associated with holding ether. This would improve the creation and redemption process for both authorized participants and the Trust, increase efficiency, and ultimately benefit the end investors in the Trust.”

The Fidelity Ethereum ETF is one of the leading Ether ETFs, with nearly $1 billion in assets under management, according to VettaFi data.

SEC Shifts Stance on Staking in ETFs

The financial regulator has historically been cautious about staking in ETFs. Last May, while approving several Ethereum ETFs, the SEC required these funds to avoid staking activities, citing concerns over securities law violations.

The landscape began to change in early this year. In February, the SEC acknowledged a filing from the New York Stock Exchange (NYSE) proposing amendments to allow staking for the Grayscale Ethereum ETFs. This acknowledgment indicated a possible shift in the SEC’s stance on staking within ETFs, following changes in leadership. Additionally, the CBOE’s recent filing came almost a month after it submitted a similar request for the 21Shares Core Ethereum ETF.

As of March 11, staking Ether offers an approximate 3.3% APR, paid in ETH, according to Staking Rewards. Other popular cryptocurrencies, such as Solana (SOL), also include staking mechanisms.

Ethereum Faces Drop but Bullish Pattern Signals Potential Breakout

Ethereum price dropped 1.14% on Tuesday, trading at around $1,871 amid developments for Fidelity Ethereum ETF. The second-largest cryptocurrency now has a market capitalization of $225.4 billion, according to CoinMarketCap.

Mikybull Crypto analysis points to a bullish diamond pattern forming on Ethereum’s chart, suggesting a potential breakout. The asset has been trading in a narrowing range, which often precedes a breakout. If buyers push the price above key resistance, Ethereum could experience a strong upward movement.

$ETH showing a bullish reversal diamond price pattern on an intraday chart. pic.twitter.com/fpcB98211J

— Mikybull 🐂Crypto (@MikybullCrypto) March 10, 2025

Crypto influencer Crypto Rover argues that ETH’s momentum is currently at an all-time low, presenting a prime opportunity to buy.

$ETH momentum is at all time lows.

This is the best moment to buy. pic.twitter.com/sm6G4xwlPX

— Crypto Rover (@rovercrc) March 11, 2025