The New York Stock Exchange (NYSE) has asked the U.S. Securities and Exchange Commission (SEC) for approval to launch a new Ethereum exchange-traded fund (ETF) from Bitwise.
If approved, investors would be able to earn staking rewards through a regulated investment product rather than managing cryptocurrency directly.
Bitwise files to add staking to Eth ETF | Source: X
Staking is a way for Ethereum holders to tie up their tokens to help operate the blockchain. In return, they’re rewarded with additional ETH. At the moment, only people who hold Ethereum in their own wallets can stake.
However, the Bitwise Ethereum ETF would alter that by allowing investors to receive staking rewards via a fund, the same way they do for traditional stocks.
The proposal was filed under the 19b-4 process, which is needed to change exchange rules and list new types of funds.
A brief of the proposal | Source: NYSE
However, the SEC has been cautious with crypto ETFs lately. It has rejected many similar proposals in the past, worrying about fraud, market risks, and protecting investors. Before giving a final answer, regulators will closely review the plan to see if it meets their standards.
