The United States Securities and Exchange Commission has postponed making a decision on staking for the Bitwise Ethereum ETF.
This action follows several months of discussions involving Bitwise, NYSE Arca, and regulatory officials. The Ethereum ETF initially received approval to hold Ethereum directly, but Bitwise later suggested incorporating staking.
Staking allows Ethereum holders to lock up their tokens to assist in securing the blockchain. In return, they earn brand new tokens.
SEC weighs risks as Bitwise pushes for staking in Ethereum ETF
Staking is widely seen as a way to make some extra money. But regulators argue that allowing staking in an Ethereum ETF could increase those risks, and even raise conflicts of interest.
The agency seeks to determine if staking in an ETH ETF could harm investors. Bitwise argues that staking could offer its ETF’s investor base additional income-generating opportunities.
Nevertheless, the SEC maintains that any changes to the Ethereum ETF should protect investors and promote equitable trading. Officials have said they are wary that staking could leave the ETF at risk of manipulation or dishonest conduct.
SEC opens public comment period on Ethereum ETF staking
The SEC has invited public comments that will dictate the fate of staking in the Ethereum ETF. Increasing numbers of investors are looking to get more exposure to Ethereum without having to own the asset directly.
The green light last year for spot Bitcoin and Ethereum ETFs was a big step forward. Still, staking as part of an ETH ETF is a sensitive matter with the SEC.
The commission has established a schedule for comments on the issue. Later, it will consider all the input it has received before it makes a final determination. In the meantime, the fund will operate as a regular spot ETH ETF. This result could impact how staking is treated in future ETFs.
If it’s adopted, other asset managers could also seek staking options.
Analysts raise odds to 95% for Solana, XRP, and Litecoin ETFs
Analysts covering the crypto exchange-traded fund (ETF) space have tipped a 95% chance for Solana, Litecoin, and XRP ETFs to be approved by the US Securities and Exchange Commission this year.
In an X post on Monday, Bloomberg’s ETF specialists Eric Balchunas and James Seyffart increased their odds for several altcoin spot exchange-traded funds.
“We expect a wave of new ETFs in the second half of 2025,” said Syeffart.
The pair tipped the odds for Solana, XRP, and Litecoin spot ETF approval at 95%, up from 90%. They gave the same odds for the approval of an ETF based on a basket or index of crypto assets.
According to the analysts, the final SEC deadline for a decision on the three altcoin ETFs is in October, while a crypto basket ETF could be approved this week.
Meanwhile, REX Osprey Solana Staking ETF is officially set to launch on Wednesday, becoming the first in the US to allow crypto staking.
The product faced initial regulatory hurdles with the SEC, which objected after clearing its registration. The main issue was whether the ETF qualified as an investment company under securities laws.
To gain approval, the issuers compromised by agreeing to invest at least 40% of assets in other ETPs, mostly domiciled outside the US.
Meanwhile, the SEC is not yet ready to approve Ethereum staking, after issuing an official notice stating that it will initiate a new examination of the Ethereum ETF proposal.
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