Staked Ether ETFs May Soon Receive SEC Green Light, Says Joe Lubin

Ethereum co-founder Joe Lubin has expressed optimism that staked Ether ETFs could soon gain regulatory approval. During a recent interview , Lubin revealed that ETF providers are actively engaged in discussions with regulators and are making strides to address complexities around staking and slashing, critical aspects of Ethereum’s proof-of-stake ecosystem.

“We’ve been in discussions with the ETF providers, and they’re already working hard on that,” Lubin said. “They expect that to be greenlit reasonably soon.”

Lubin also emphasized the broader benefits such funds could bring to the Ethereum ecosystem, including increased robustness, diversification, and client diversity. His comments come as fund issuers strive to craft user-friendly solutions, signaling a potentially transformative step for Ethereum’s staking ecosystem.

Crypto-Friendly SEC Leadership Sparks Hope

The U.S. Securities and Exchange Commission (SEC) has not yet approved staked Ether ETFs, but the agency’s new leadership is raising industry expectations. On January 21, the SEC announced the formation of a crypto task force led by Commissioner Hester Peirce, known for her pro-crypto stance.

Peirce has long been vocal about the need for regulatory clarity in the crypto space. In a December interview with Coinage, she hinted at a shift within the SEC under the new administration , suggesting that approval for staked Ether ETFs might now be within reach.

“If it changes from a majority of Commissioners who don’t want things to go through to a majority of Commissioners who do want things to go through, then yeah, it’s easier,” she said.

Ether ETFs Gaining Momentum

Industry leaders are already showing support for this new direction. Former Polygon financial chief Young Ko highlighted the importance of Peirce’s leadership, calling it a significant win for the crypto ecosystem. “She understands the tech and is a champion for the builders,” Ko stated, noting that staked Ether ETFs could provide staking yield opportunities for investors.

Approved last year, spot Ether ETFs have already made a splash in the market. Nine products were launched in July 2024, and while their initial performance lagged behind Bitcoin ETFs, they have since accumulated a total inflow of $2.7 billion.

As the SEC explores the approval of staked Ether ETFs, many believe this could further bolster Ethereum’s position as a leading blockchain ecosystem.