The U.S. Securities and Exchange Commission (SEC) has officially delayed approval for the staking feature within Bitwise’s proposed spot Ethereum exchange-traded fund (ETF).
This decision specifically impacts the component that would allow the ETF to generate yield through staking deposited Ether on the Ethereum network. The delay signals ongoing regulatory caution regarding crypto-native features in traditional financial products.
Market participants view the staking mechanism as a distinguishing factor that could impact investor returns. The SEC’s timeline for reconsidering the feature remains undisclosed, leaving the fund’s operational capabilities pending regulatory clearance.