Ethereum gets another treasury company as SEC washes its hands of liquid staking

A big sigh of relief was heard from the ethereum community yesterday after the SEC’s Division of Corporation Finance issued a statement saying liquid staking does not fall within the agency’s jurisdiction, as it does “not involve the offer and sale of securities.” Liquid staking refers to the process of locking up tokens to aid in a blockchain’s consensus mechanism in exchange for rewards, and it’s key to the ethereum ecosystem.

This could clear the path for allowing staking within spot ethereum ETFs, which could make the funds more appealing.

• Speaking of ETFs... on Tuesday, US spot ethereum ETFs saw $73.2 million in inflows, flipping positive after seeing their largest daily outflow of $465 million at the beginning of the week. Cumulative inflows into the investment vehicles exceed $9 billion, per SoSoValue. 

• Meanwhile, Cosmos Health, a healthcare group with a market capitalization of $29 million, announced Wednesday it was joining the ranks of ethereum treasury companies. The firm has secured “$300 million in senior secured convertible promissory notes” to jumpstart its new strategy, which sent its shares up as much as 17% on the news.

• Ethereum’s parent chain is sending bullish signals as well, leading all networks by bridged assets into its ecosystem over the past seven days, one month, and three months, data from blockchain analytics firm Artemis shows.