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The CBOE BZX Exchange has submitted a request to the US stock and values commission. presentation.
If approved, the ETF would bet on ethereum (eth), allowing investors to obtain betting rewards.
Regulatory obstacles
The rethink is an integral part of the ethereum Pond (POS) test consensus mechanism, where participants block eth to validate network transactions and gain rewards.
In 2024, the SEC approved several ETF of ethereum but explicitly prohibited the rethinking. The regulator cited concerns that the reference could violate federal values of values, aligning with its broader position that rethinking services resemble the offers of unregistered values.
This position had led to application actions against Coinbase and Kraken, both accused of operating illegal rethinking programs.
To mitigate regulatory concerns, CBOE proposes to use “aim and click.” Unlike traditional rethinking models where eth is transferred to third parties, this approach allows ETF to apostize its holdings without moving the assets of its custody wallet.
This configuration reduces the risk of theft, although it does not eliminate the possible cutting sanctions, a process where eth is lost partially or completely due to the violations of the network rules.
The firm also explained that excluding the rethinking of the ETF ethereum Core Ethere of 21Shares is similar to a product quoted in the stock market (ETP) on the stock market (ETP) of its underlying assets.
He states that eth reference would improve investors' yields, improve ETF's ability to track ethereum's performance and optimize the process of creation and redemption of the fund.
Will it be approved?
This presentation marks the first time that a cryptographic ETF that is quoted in the United States has requested rethinking privileges. If approved, you could establish a precedent for other funds that seek to integrate rewards into their offers.
Optimism has grown after recent leadership changes in the SEC, which some consider more open to financial products related to cryptography. Commissioner Hester Peirce, a known defender of cryptographic innovation, has previously suggested that the reference in Etfs ethereum remains an open issue for discussion.
Meanwhile, Bloomberg Etf James Seyffart analyst <a target="_blank" href="https://x.com/jseyff/status/1889804247128220031?s=46″>predicted That if the SEC recognizes the presentation, the deadline for approval or final rejection will fall around October.
If it succeeds, this movement could remodel the panorama of ethereum -based investment products and create new opportunities for investors seeking exposure to reference rewards within a regulated ETF structure.
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