The U.S. Securities and Exchange Commission (SEC) has postponed its determination on whether to let the Bitwise Ethereum ETF engage in staking. According to the filing, the SEC has now opted to initiate proceedings, an official step that provides additional time and lengthy consideration before coming to a conclusion. This doesn’t indicate the proposal is turned down.
The filing merely indicates the SEC requires additional time to determine if the shift complies with investor protections and fair market practices. NYSE Arca, the exchange that lists the ETF, had filed a proposal in March 2025 to amend its rules so the trust could stake its held Ethereum (ETH) and earn staking rewards.
The filing reads, “The key concern revolves around whether allowing staking would expose investors to additional risks, such as fraud, manipulation, or unfair trading practices. The SEC is especially focused on whether the proposed changes comply with Section 6(b)(5) of the Securities Exchange Act, which mandates strong investor protections.”
For the next three weeks, the SEC is now accepting public comments. Anyone who is interested can send the Commission an email or send a letter with their ideas, information, or concerns. The SEC will consider this input to help determine whether to accept or reject the proposal
Staking Ethereum through the Bitwise’s ETF is suspended as regulators assess the possible benefits and hazards. A final decision might be made as soon as July 6, 2025, unless the SEC chooses to delay it again.
Also Read: SEC Delays Decision on Franklin Templeton’s Ethereum ETF Staking
