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Breaking: US SEC Delays Staking For Ethereum ETF With Bitwise Decision

The US SEC delays Bitwise’s Ethereum ETF staking proposal, launching a new review and seeking public input amid investor risk concerns.
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Breaking: US SEC Delays Staking For Ethereum ETF With Bitwise Decision

Highlights

  • SEC delays Bitwise Ethereum ETF staking decision, launches new review.
  • Bitwise argues staking boosts investor returns without altering ETF structure.
  • Public comments sought to assess staking risks.

The United States Securities and Exchange Commission has delayed a decision on staking for the Bitwise Ethereum ETF. This decision comes after months of talks between Bitwise, NYSE Arca, and regulators.

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SEC Launches Fresh Review as Bitwise Pushes for Staking in Ethereum ETF

The Ethereum ETF was first approved to hold Ethereum directly, but Bitwise later proposed adding staking to it. Staking lets holders of Ethereum lock up their coins to help secure the network. In return, they earn new coins as rewards.

Many see staking as a good way to earn extra income. However, regulators believe staking in an Ethereum ETF might increase risks and create possible conflicts of interest.

On June 30, 2025, the SEC released an official statement that it will start a new review of the Ethereum ETF proposal. This move shows they are not ready to approve staking yet.

The commission wants to understand if staking in an ETH ETF could hurt investors. Bitwise believes staking can help its ETF generate extra returns for investors.

The firm says this would not change how the ETH ETF holds or reports its assets. Bitwise argues staking could make the Ethereum ETF more attractive to both retail and big investors.

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SEC Seeks Public Input on Bitwise’s ETF Proposal

However, the SEC says any change to the Ethereum ETF must protect investors and support fair trading. Officials are concerned that staking could lead to fraud or unfair practices.

The SEC now wants public comments to guide its final decision on the Ethereum ETF staking plan. Many investors want more ways to access Ethereum without holding it directly.

The approval of spot Bitcoin and Ethereum ETFs last year was a big step forward. But adding staking to an ETH ETF is still a sensitive topic for regulators.

The SEC has set a deadline for comments on this proposal. After that, they will review all feedback before making a final decision.

Until then, the fund will remain as a regular spot ETH ETF. This choice could shape the future of staking in all similar ETFs. If approved, other fund managers might try to add staking as well.

Meanwhile, Rex-Osprey’s CEO, Gregory King, has claimed that his firm’s Solana staking ETF will launch on July 2.

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Paul Adedoyin

Paul Adedoyin is a crypto journalist with 4+ years experience who provides timely news, in-depth research, and insightful content to inform and empower his audience. His works have been featured on sites such as CryptoMode, CryptoNewsFlash among others. He holds a degree in Geophysics from OAU, Nigeria. When he's not writing, he loves watching soccer and reading educative journals. He can be reached via paul@coingape.com

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