Yeliz Akmaca 
In an official notice published on June 30, 2025, the U.S. Securities and Exchange Commission (SEC) announced it is postponing its decision on Bitwise’s proposal to enable staking within its Ethereum ETF. The commission also initiated a public comment period to gather opinions on the matter.
Bitwise argues that staking could enhance investor returns. The company clarified that it has not altered the ETF structure, emphasizing that the proposal only aims to increase the potential for passive income. However, the SEC raised concerns that staking might elevate potential risks for investors and could lead to conflicts of interest.
Previously, Ethereum ETFs were approved solely for holding spot ETH. Bitwise now seeks to incorporate staking within the ETF to earn additional rewards by locking up ETH in the Ethereum network. This system, known as staking, involves earning new coin rewards in return for securing the blockchain.
To better understand the impact of this proposal on investors, the SEC is requesting public commentary, with particular focus on the risks associated with staking. Key concerns include investor control over staked assets, potential for fraud, and lack of transparency.
Notably, the SEC’s decision will not only affect Bitwise’s application but could also set a precedent for other Ethereum ETF providers. If approved, staking support could usher in a new era for crypto ETFs.
DOGE ETF Decision Also Delayed: SEC Postpones Review of 21Shares Application
The SEC’s focus is not limited to Ethereum ETFs. The application from 21Shares for a Dogecoin (DOGE)-based ETF also failed to progress to the next stage of evaluation. The commission extended the review period by an additional 60 days for a more detailed assessment.
21Shares submitted its DOGE ETF application earlier this year, triggering major discussions about the role of highly volatile assets like DOGE in regulated investment products. The SEC has yet to provide a clear stance on how such speculative assets should be treated in ETF form.
However, this delay does not necessarily mean rejection. The commission is examining whether the application aligns with investor protection, market fairness, and transparency principles.
A New Era for Crypto ETFs May Be Approaching
Staking-related proposals are reframing crypto investment products not just as value-holding tools but also as yield-generating instruments. Bitwise claims adding staking features to its Ethereum ETF could appeal to both retail and institutional investors.
Ultimately, the SEC’s decisions on these proposals will influence not just Bitwise but all fund managers in the space. If staking is approved, it may lead to the development of similar staking-enabled ETF models for Ethereum and other proof-of-stake (PoS) cryptocurrencies.
Meanwhile, another development in the crypto space: RexShares-Osprey CEO Gregory King announced that the company would launch a Solana staking ETF on July 2. This move signals growing momentum behind staking-enabled ETFs.
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