NEWSLETTER
According to February 12 presentation With the US stock and values commission. UU. (SEC), the CBOE BZX Exchange has submitted a request for approval for the rethinking within the 21Shares ethereum (eth) fund (ETF).
CBOE seeks the approval of ethereum ETF.
The CBOE BZX exchange has been presented to the SEC to allow eth to remain in the Core ethereum ETF of 21Shares. If approved, the ETF may bet its eth holdings, allowing investors to obtain betting rewards in their ethereum holdings.
For not initiated, the rethink is one of the cornerstones of the ethereum protocol. The Blockchain made the transition from a mechanism for proof of work (POW) to a Swindle test system (POS) in September 2022. According to the POS model, network participants can bet their eth to validate transactions and get rewards in return.
While the SEC approved its first ETF ethereum in 2024, explicitly prohibited bets at that time, citing possible violations of federal values of values. This restriction led the main exchanges of cryptocurrencies such as Coinbase and Kraken to discontinue Its rethinking services for US clients.
However, the position of the SEC can be changing after Donald Trump's victory in the presidential elections of the United States of 2024. The agency now has a new leadership, reportedly which consists of more pro-crypto officials.
This is in marked contrast with the previous administration under the former president of the SEC, Gary Gensler. The new leadership change probably encouraged CBOE BZX Exchange to present its application for state services in ETF ethereum.
In its application, the CBOE BZX exchange has proposed to use a betting mechanism “point and click”. This method of rethinking differs from the most traditional, since it does not require that eth be transferred to third parties for bets. Rather, it allows the ETF to bet its eth holdings directly from its custody wallet.
While the aiming and click betting mechanism reduces the probability of commitment or non -compliance with safety, does not completely eliminate possible cutting sanctions. To elaborate, cutting sanctions are imposed on the validators that violate the rules of the network, which leads to partial or complete confiscation of your eth staked.
To strengthen its case, the CBOE BZX exchange argued that prohibiting the rethinking for the 21Shares ethereum ETF is similar to preventing a capital ETF from distributing dividends to its investors. The firm argues that the rethinking rewards should be treated in a similar way to dividends, since they represent additional yield generated by maintaining the asset.
eth Price reacts to the reference news
After the presentation of the CBOE BZX Exchange before the SEC, eth experienced an acute price increase. The second largest cryptocurrency per market capitalization increased from $ 2,547 to a maximum of $ 2,795 before stabilizing.
Similarly, the chips related to eth bets, such as Lido (LDO), experienced a remarkable price rally. Ldo increased from $ 1.46 to a peak of $ 1.84 before returning on its current price of $ 1.66 at the time of writing. At the time of publication, eth is traded at $ 2,633, 2.3% more in the last 24 hours.
Prominent image of Unspash.com, CBOE and TrainingView.com graphics
