SEC Hits Pause on Bitwise Ethereum ETF Staking Decision
The U.S. Securities and Exchange Commission (SEC) has chosen to delay its decision on whether Bitwise’s Ethereum ETF can participate in staking its ETH holdings. Rather than approving or denying the proposal outright, the SEC has initiated formal proceedings, signaling that the matter requires more extensive review.
The move doesn’t spell rejection—just that more time is needed to assess whether staking aligns with existing investor protections and fair market practices.
In March 2025, NYSE Arca—the exchange proposing to list the ETF—filed to amend its rules to allow the trust to earn staking rewards from its Ethereum holdings. However, the SEC raised concerns about potential risks, including fraud, manipulation, and unfair trading activity.
The commission cited Section 6(b)(5) of the Securities Exchange Act as its legal framework, which emphasizes the need for mechanisms that protect investors and uphold fair trading standards.
During the next three weeks, the SEC will be accepting public comments. Individuals and organizations can voice their support, concerns, or feedback via email or official letters. These inputs may influence the final outcome.
As of now, staking activity through the Bitwise Ethereum ETF remains on hold while regulators weigh the pros and cons. Unless another delay occurs, the SEC’s final ruling is expected by July 6, 2025.
This case could set a precedent for other crypto-related ETFs and how they interact with staking protocols in a regulated environment.
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