Key Notes

Key Notes:

The Ethereum Foundation has allocated 10,000 ETH ($26.7M each) to DeFi platforms Spark and Aave, marking its first major engagement in the DeFi ecosystem.21Shares has filed for a staked Ethereum ETF with the SEC, introducing a “point-and-click staking” model to securely stake ETH held by the Trust.Amid these developments, Ethereum price rally above $3,000 could arrive soon.

Ethereum price ETH $2 770 24h volatility: 4.6% Market cap: $333.84 B Vol. 24h: $18.34 B has bounced back once again in a broader crypto market recovery jumping all the way to $2,750 and eyeing further rally above $3,000. The largest altcoin has been underperforming for a while despite strong whale activity and accumulation by Donald Trump‘s DeFi project – World Liberty Financial.

On the monthly chart, the Ethereum price is down more than 17% amid the broader crypto market turbulence. Despite, this, analysts continue to be hopeful for ETH citing major gains ahead.

According to data from CryptoQuant, Ethereum’s realized price metric, which measures the average price at which all ETH was last transacted, currently stands at $2,263. This level was reached on February 3 following a significant market correction.

The realized price bands offer insight into Ethereum’s potential support and resistance levels. The upper realized price band is 2.3 standard deviations above the realized price, while the lower band is 0.5 standard deviations below it. Historically, Ethereum’s market cycle tops and bottoms have often occurred near these upper and lower bands.

Source: CryptoQuant

In another development, the Ethereum Foundation has been moving a large number of ETH amid its attempt to foray into the DeFi ecosystem. As per the latest on-chain data, the Foundation has transferred 10,000 ETH, worth $26.7 million, each to DeFi projects Spark and Aave. These transactions mark the foundation’s first major moves to deepen its engagement with DeFi platforms.

Source: Spot On Chain

This strategic allocation underscores the foundation’s commitment to supporting the growth and adoption of DeFi. Both Spark and Aave are prominent DeFi protocols, with Aave leading in decentralized lending and Spark focused on enhancing blockchain-based financial services.

On Wednesday, February 12, the Chicago Board Options Exchange filed on behalf 21Shares to list a staked Ethereum ETF. The 19b-4 filing by CBOE names the product “21Shares Core Ethereum ETF”, requesting for the staking facility on the Ethereum holdings of all US ETF issuers.

Speaking on the development, Bloomberg ETF strategist James Seyyfart said: “I believe this is the first ETF to file with the SEC and request the ability to permit staking. The final deadline for this filing will be somewhere around the end of October”.

The upcoming product introduces a “point-and-click staking” feature, allowing ETH to remain securely in custody while earning staking rewards. These rewards will be treated as income for the fund, leveraging trusted staking providers to ensure reliability.

Unlike traditional “Staking-as-a-Service” models, the ETF takes a distinctly conservative approach. It will exclusively stake ETH held by the Trust itself, avoiding any pooling with external entities. Additionally, it will refrain from advertising staking services, promising specific returns, or subsidizing slashing risks, ensuring a straightforward and secure staking framework for investors.

Last month in January, the US SEC, under the leadership of crypto mom Hester Peirce announced the launch of a new crypto task force dedicated to bringing clear crypto regulation. Earlier, Peirce said that staking could come to Ethereum ETFs under the new administration. This will make the investment product even more attractive for institutional players.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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