SEC Delays Decision on Bitwise Ethereum ETF Collateralization Proposal

PANews reported on July 1 that the U.S. Securities and Exchange Commission (SEC) has postponed its decision on Bitwise’s Ethereum ETF staking proposal and announced the launch of a new round of review while soliciting public opinions. Previously, Bitwise proposed to add a staking function to its Ethereum ETF, which would allow investors to participate in network security and receive rewards by locking up Ethereum. Bitwise believes that this can improve investor returns without changing the ETF structure.

However, the SEC expressed concerns about the investment risks and potential conflicts of interest that pledges may bring, and believed that any amendments must ensure investor protection and fair trading. The SEC issued a statement on June 30, saying that it needed to further evaluate the impact of pledges on investors and set up a public comment period.

Currently, Bitwise’s Ethereum ETF will remain as it is, holding only spot Ethereum. This decision may have an impact on the staking function of similar ETFs in the future. If approved, other fund management companies may also try to add staking functions. In addition, Gregory King, CEO of Rex-Osprey, said that its Solana staking ETF is expected to be launched on July 2.

Earlier news, market news: REX-OSPREY SOLANA ETF will start trading on Wednesday .