New York Stock Exchange applies for Ethereum ETF with innovative staking function – experts see great potential for investors

New York Stock Exchange applies for Ethereum ETF with innovative staking function – experts see great potential for investors

NYSE proposes Ethereum ETF with staking feature from Bitwise

The New York Stock Exchange (NYSE) has filed an application to approve an Ethereum exchange-traded fund (ETF) that includes staking income. This application aims to list and trade shares of the Bitwise Ethereum ETF, which would allow investors to generate staking income without having to directly hold cryptocurrencies. Approval of the application would significantly expand access to crypto investment opportunities through regulated financial channels.

Bitwise seeks SEC approval for innovative ETF structure

Bitwise has registered with the U.S. Securities and Exchange Commission (SEC) filed an application for an Ethereum ETF with integrated staking. Staking allows users to lock their cryptocurrencies to validate blockchain transactions. As a rule, they receive additional tokens as compensation. The proposed ETF would create new access to crypto assets through a regulated platform, thereby bypassing the requirements for directly owning and managing digital assets.

This move is not Bitwise's first foray into the crypto ETF space. The Bitwise Aptos ETF was recently registered in Delaware, USA and could therefore also lead to SEC approval. In Europe, Bitwise has already launched the Bitwise Aptos Staking ETP, which offers traders access to APT price performance and additional staking returns.

The SEC will conduct a comprehensive review before approving the application. The authority has repeatedly raised concerns about crypto financial products, specifically in relation to investor protection, fraud prevention and market stability.

The proposal has received strong support

Robbie Mitchnick, head of digital assets at BlackRock, called the Ethereum ETF a “tremendous success” during his speech at the Digital Asset Summit. However, he pointed out that the lack of staking features is a significant shortcoming. According to Mitchnick, staking is crucial to generating investment returns in the Ethereum ecosystem. The integration of staking functions could therefore significantly increase investor interest in Ethereum ETFs.

These comments came days after the SEC indefinitely postponed its decision on approving options for BlackRock's iShares Ethereum Trust ETF (ETHA). The SEC justified the postponement based on the need for a longer review period to assess the comprehensive impact of such a rule change.

If approved, the Bitwise Ethereum ETF would be the first U.S. investment product to enable staking returns in an ETF structure. Approval could pave the way for comparable products and encourage institutional investments in Ethereum.

Market overview

At the time of writing, Ethereum is trading at$1,969.91and recorded a minus of1.55 percentin the last 24 hours.