The United States Securities and Exchange Commission (SEC) has moved to request the publicโs opinion on the Bitwise Ethereum ETF staking proposal. Namely, Bitwiseโs crypto management firm decided to pitch an Ethereum Spot ETF with staking abilities, magnifying the potential income beyond the regular Spot market trades.
Why Bitwise Ethereum ETF Is Put On Hold
Even though the SEC gave the nod to the Bitwise ETH ETF at first, the final decision is still pending after Bitwise announced the innovative staking model on this fresh crypto ETF product. The NYSE Arca filed a 19(b)(1) motion on March 20, 2025, which included the new amendment thatโs now under an extended consideration time by the SEC.
Certainly, Bitwiseโs argument is that Ethereum staking services on an Ether Spot ETF would make it very attractive to both retail & enterprise-grade investors. On the other hand, SEC wants to find out if ETH staking on a traditionally-regulated ETF product could put the stock investors in harmโs way.
Ethereum Sees Big-Time Staking Demand
Ethereum did indeed hit some fresh all-time heights in staking volume, with over 28% of all Ethereum (ETH) supply now locked up for staking rewards. The trend has been going strong since June, aligning with the 7th straight week of positive inflows in the Ethereum ETF market.
Just last week, the Ether ETFs garnered 106K ETH inflows. Notably,the largest daily inflow of $100.7 million occurred on June 23, 2025. Moreover, the balance sheet derived from Farside Investorsโ data demonstrates that any red day was followed by an immediate bounce back the next business day, showcasing Ethereumโs deep market liquidity.
If the positive momentum on the ETF market carries on, Etherโs $4,000 reclaim could serve as price appreciation. However, the currently uncertain geopolitical conditions & the fragile stock market movement adds another layer of unpredictability to the short-term price moves.
On The Flipside
- Ethereumโs Proof of Stake (PoS) chain is at the center of centralization concerns due to major validator power exceeding 40%.
- This calculation includes 25.6% by Lido Protocol, while Coinbase & Binance cumulatively have 15% of Etherโs shares.
Why This Matters
Traditional finance inclusion, such as the 8 Ether ETFs live in the United States stock exchanges, has played an integral part in crypto adoption.
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People Also Ask:
The SEC is taking extra time to review Ethereum ETF proposals, focusing on regulatory concerns around Bitwiseโs staking plans.
Bitwise is proposing staking Ether in its ETF to earn rewards, but the SEC is examining potential risks to investors.
The delay may temper short-term price hype for Ethereum as institutional access via ETFs is postponed.
Approval could slip into 2026, depending on the SECโs review of Bitwiseโs staking and other filings.
Newbies should research Ethereumโs fundamentals and follow DailyCoin, as well as other trusted media news outlets for ETF updates.
