- NYSE proposes allowing Bitwise Ethereum ETF staking.
- Potential market expansion for Ethereum ETFs.
- Awaiting SEC decision on staking integration.
The proposal could introduce staking rewards to Ethereum ETFs, affecting investment dynamics, while the SEC’s pending decision may influence market practices.
The New York Stock Exchange has submitted a proposal to the Securities and Exchange Commission aimed at enabling Bitwise’s Ethereum ETF to engage in staking. Filed under the 19b-4 rule change process, the proposal seeks to amend exchange rules.
If approved, this would be the first U.S. ETF offering staking rewards, potentially increasing its net asset value and investor interest in Ethereum staking. The proposal features a “point-and-click” system for streamlined staking.
The introduction of staking could enhance Ethereum ETF appeal, as noted by Robert Mitchnick. Mitchnick emphasized that prior absence of staking rewards hindered Ethereum ETFs relative to Bitcoin alternatives.
Robert Mitchnick, Head of Digital Assets, BlackRock, noted that “the absence of staking rewards has hindered the growth of Ethereum ETFs compared to their Bitcoin counterparts.”
The SEC is evaluating the proposal due to concerns about investor protection and market stability. Previous apprehensions about cryptocurrency-based financial products highlight regulatory complexity.
The latest price data indicates that Ethereum is currently trading at $1,892.35, experiencing a fluctuation between $1,849.06 and $1,959.65. Analysts suggest that this trend aligns with previous market movements, reinforcing historical price patterns.
Regulators and industry experts highlight challenges in enabling ETF staking. BlackRock’s Mitchnick recognizes the sophisticated processes and addressing complex challenges involved, even under a supportive regulatory environment.
