TLDR
- The SEC has delayed its decision on the staking feature for the 21Shares spot Ethereum ETF.
- 21Shares continues to operate its Ethereum ETF despite the regulatory hold on staking.
- The delay aligns with the SEC’s earlier approach of requiring issuers to remove staking features.
- The SEC also postponed its review of the 21Shares Solana ETF proposal.
- Other Ethereum ETF issuers are pushing to include staking and In-Kind redemptions.
The 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 move keeps 21Shares in regulatory limbo, 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 staking integration. This development mirrors the regulator’s earlier stance requiring ETF issuers to remove staking before initial approvals. Nevertheless, the growing interest in adding staking to these funds reflects ongoing product evolution.
Despite the delay, the 21Shares Ethereum ETF stays competitive due to its early entry and existing market presence. However, approval of the staking feature could significantly enhance its appeal. The delay may be strategic, allowing regulators to align decisions across similar applications.
Solana ETF Faces Separate SEC Review Delay
The SEC has also deferred its decision on the 21Shares Solana ETF proposal, extending its broader scrutiny of crypto-linked products. This separate delay demonstrates the agency’s consistent approach toward emerging digital asset ETFs. While unrelated to Ethereum ETF matters directly, it signals the SEC’s cautious timeline.
The Solana ETF proposal’s extended review further complicates 21Shares’ expansion efforts in the US crypto ETF space. Still, 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.
Though the Solana ETF delay is distinct, its timing alongside Ethereum ETF news underscores regulatory hesitation. The SEC’s decisions are shaping the future of digital asset exposure through ETFs. Whether Solana or Ethereum, the regulator holds firm control over market developments.
Ethereum ETF Competition Intensifies with In-Kind Redemption Push
Other issuers of ETH ETF products are now pressing for approval to include staking features in their offerings. This comes after the SEC acknowledged BlackRock’s proposal for In-Kind redemptions in its Ethereum ETF application. That acknowledgment, while not an approval, signals rising interest and regulatory engagement with ETH-related funds.
SEC DELAYS IN-KIND REDEMPTIONS FOR FIDELITY SPOT BITCOIN AND ETHEREUM ETFS
— Phoenix » PhoenixNews.io (@PhoenixNewsIO) May 22, 2025
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. Approval could reshape Ethereum ETF structures across all current applicants.
New Leadership Boosts Hopes for XRP, Polkadot, and TRON ETFs
The current US administration’s support for crypto assets has influenced sentiment surrounding new digital asset ETF approvals. The government’s backing has brought renewed optimism to issuers exploring XRP, Polkadot, and TRON ETF products. This policy shift contrasts with past regulatory resistance to such initiatives.
Despite ongoing investigations into crypto-related activities, the administration maintains a supportive stance on digital asset innovation. This includes proposals that align with increased transparency and broader market participation. As a result, applications for new ETFs continue to emerge.
