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Cboe BZX asked the US Securities and Exchange Commission (SEC) for approval to introduce staking for multiple Ethereum ETFs (exchange-traded funds), a feature that might help them stem persistent outflows.
Cboe, which is linked to five spot ETH ETF issuers in the US, including VanEck, Fidelity, Franklin Templeton and Invesco, filed multiple amended 19b-4 filings with the SEC yesterday to allow staking for the Fidelity Ethereum Fund (FETH) and the Franklin Ethereum ETF (EZET).
Cboe Filing Could Allow Fidelity Ethereum ETF To Stake All Of Its ETH
Cboe’s proposed rule change would allow the funds to stake “all or a portion” of their funds “either through one or more trusted staking providers,” according to the filing.
If approved by the SEC, staking will allow the funds to play a part in Ethereum’s network consensus, receiving annual rewards in exchange for their contribution.
According to Staking Rewards, ETH yields stand at around 3.3% per annum, denominated in ETH.
With the funds collectively managing over $1.7 billion, according to Farside Investors data, the staking rewards could lead to substantial additional returns for the ETFs’ shareholders.
The SEC will still need to approve the proposed rule changes before the staking can commence.
Ethereum ETFs Continue Negative Outflow Streak
Cboe’s proposed rule changes come as US spot Ethereum ETFs continue a streak of negative flows. Yesterday marked the fifth consecutive day of net outflows for the funds, after investors withdrew $21.6 million.
Investors pulled $11.8 million from BlackRock’s ETHA’s reserves, while the remaining $9.8 million was withdrawn from Fidelity’s FETH.
Ethereum ETF Flow (US$ million) – 2025-03-11
TOTAL NET FLOW: -21.6
ETHA: -11.8
FETH: -9.8
ETHW: 0
CETH: 0
ETHV: 0
QETH: 0
EZET: 0
ETHE: 0
ETH: 0For all the data & disclaimers visit:https://t.co/FppgUwAthD
— Farside Investors (@FarsideUK) March 12, 2025
Both FETH and ETHA have been the preferred Ethereum ETFs among investors, with their cumulative flows topping $5.5 billion.
BlackRock’s ETHA accounts for the lion’s share of this amount, and currently manages almost $4.2 billion.
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