US SEC Delays Approval Announcement of Staking-Offering Ethereum ETF

"Investor Protection Could Be Threatened"... Public Opinion Gathering Begins

The U.S. Securities and Exchange Commission (SEC) has put a brake on Bitwise's Ethereum (ETH) Exchange Traded Fund (ETF) staking plan. The SEC has suspended Bitwise's staking proposal and resumed the public opinion gathering process regarding risks and market structure on the 30th.

The SEC originally set the 20th as the approval deadline for Bitwise ETF's staking function but postponed the deadline due to additional review.

Previously, Bitwise obtained approval for an Ethereum spot ETF from the SEC. Afterward, they added a provision to provide staking returns to investors, which the SEC restricted. The SEC has now delayed this restriction.

The SEC judged that staking could threaten investor protection. In particular, they pointed out structural issues such as liquidity restrictions, asset lockup, and validator slashing.

Bitwise countered that staking does not harm the ETF's transparency and structure and can benefit both individual and institutional investors through improved returns.

The SEC cited Section 6(b)(5) of the Securities Exchange Act, questioning whether Bitwise's proposal can guarantee fair market operation and manipulation prevention.

Meanwhile, the first U.S. ETF allowing Solana (SOL) staking has been approved.

Asset management firm Rex Shares announced through an official statement on the 1st that they will launch the 'Rex-Osprey Solana Staking ETF (SSK)' in collaboration with Osprey Fund, which tracks the spot price of Solana. SSK, to be listed on the Chicago Board Options Exchange (CBOE), is set to be the first ETF that not only tracks the spot Solana price but also provides staking returns to investors.

Reporter Jung Ha-yeon yomwork8824@blockstreet.co.kr