The U.S. Securities and Exchange Commission (SEC) has postponed the implementation of the staking functionality for Bitwise’s proposed spot Ethereum exchange-traded fund (ETF).
This delay impacts Bitwise’s application seeking regulatory approval to allow the ETF to stake a portion of its underlying ETH holdings. Staking involves locking cryptocurrency to support blockchain network operations in exchange for rewards.
The SEC’s decision creates uncertainty regarding the timeline for a final ruling on incorporating staking into the fund operations. The regulator has not provided specific reasons for the postponement.
Staking compatibility had been seen as a potential differentiator for ETFs seeking to attract investors interested in yield generation. The delay leaves Bitwise’s plan for integrated yield generation via Ethereum staking on hold pending further SEC review.