The New York Stock Exchange (NYSE) has proposed amendments that will create staking rewards on an Ethereum-based exchange-traded fund (ETF). The proposal seeks to list and trade shares of the Bitwise Ethereum ETF with staking capabilities, marking an advancement in cryptocurrency-related financial instruments. If passed, the ETF would open an opportunity for investors to obtain staking rewards using traditional investment platforms instead of directly owning crypto.
Bitwise Proposes Ethereum ETF with Staking
In a recent filing with the U.S. SEC, Bitwise has requested approval to launch an Ethereum ETF that incorporates staking. Under the 19b-4 rule change filing, this proposal attempts to amend NYSE regulations to facilitate the listing and trading shares in this ETF.
Staking is a process that allows a user to lock his or her cryptocurrency in order to validate blockchain transactions and earning additional tokens as rewards. At present, staking is mostly viable for those who want to hold and manage digital assets directly. Staking within an ETF would introduce another access channel to a regulated financial instrument that would use this mechanism to provide broad access to the Ethereum staking rewards.
The SEC is expected to conduct a detailed review before deciding on Bitwise proposal. The agency has previously expressed concerns regarding cryptocurrency-based financial products, particularly around investor protection, potential fraud, and market stability.
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Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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