- NYSE proposed an Ethereum ETF with staking, allowing investors to earn rewards without holding ETH.
- Bitwise filed a request with the SEC to amend NYSE regulations and enable staking within the ETF.
- The SEC’s decision remains uncertain, as concerns over fraud and market stability could delay approval.
The New York Stock Exchange (NYSE) is looking to shake things up in the crypto investment space. A newly proposed amendment could allow staking rewards within an Ethereum-based exchange-traded fund (ETF), bringing a fresh twist to traditional finance.
If approved, the Bitwise Ethereum ETF with staking capabilities would provide investors a way to earn staking rewards—without the need to hold ETH directly. Instead, they could access Ethereum staking returns through conventional investment platforms, merging traditional finance with blockchain rewards.
Bitwise’s Push for a Staking-Enabled Ethereum ETF
Bitwise recently submitted a 19b-4 rule change filing with the U.S. Securities and Exchange Commission (SEC), requesting approval to launch this groundbreaking ETF. If greenlit, the amendment would tweak NYSE regulations, allowing the listing and trading of shares for the Ethereum ETF with built-in staking features.
Staking, for those unfamiliar, involves locking up cryptocurrency to validate blockchain transactions, earning additional tokens as a reward. Right now, this process is mostly limited to direct crypto holders. But an ETF with staking could open the door for broader institutional and retail participation, giving investors a regulated way to tap into Ethereum’s staking yields.
Regulatory Scrutiny & Potential Roadblocks
The SEC has a history of taking a cautious stance on crypto-based financial products. While ETFs tied to spot Bitcoin and Ethereum have gained traction, staking remains a regulatory gray area. Concerns over investor protection, fraud risks, and market stability could make the approval process more complex.
The agency is expected to conduct a thorough review before making a decision on Bitwise’s proposal. If approved, this move could signal a major shift in how crypto staking integrates with traditional financial markets.
For now, investors and crypto enthusiasts alike are watching closely. Will the SEC embrace this new era of Ethereum ETFs, or will regulatory hurdles slow down the progress?
