NYSE Proposes Bitwise Ethereum ETF with Staking Rewards, Awaiting SEC Approval
Key Highlights:
- The NYSE has submitted a proposal to the SEC for a Bitwise Ethereum ETF that includes staking rewards.
- If approved, it would be the first U.S. ETF to offer staking, expanding investor access to ETH staking.
- The SEC’s decision remains uncertain, as it evaluates risks related to market integrity, investor protection, and fraud.
The New York Stock Exchange (NYSE) has filed a request with the U.S. Securities and Exchange Commission (SEC) to introduce an Ethereum-based exchange-traded fund (ETF) with staking rewards. If approved, this ETF would allow investors to earn staking rewards without directly managing cryptocurrency holdings, making Ethereum staking more accessible through traditional financial markets.
Bitwise Submits Proposal for Ethereum ETF with Staking
Bitwise has officially filed for approval to launch an Ethereum ETF that integrates staking rewards. The 19b-4 rule change proposal, submitted to amend NYSE regulations, would enable the listing and trading of shares in this staking-enabled ETF.
Staking is the process of locking up cryptocurrency to support blockchain transactions, rewarding participants with additional tokens. Traditionally, staking is available only to individuals who directly manage crypto assets. However, incorporating staking into an ETF would provide regulated access to staking benefits, making it easier for institutional and retail investors to participate.
Will the SEC Approve the Proposal?
The SEC will conduct a thorough review before making a decision. The agency has historically raised concerns about cryptocurrency-based financial products, particularly in terms of investor protection, fraud risks, and market stability. While the proposal represents a significant step in bridging traditional finance and crypto, regulatory approval remains uncertain.
