The New York Stock Exchange (NYSE) has submitted a new proposal to the U.S. Securities and Exchange Commission (SEC) to permit staking for Bitwise's Ethereum ETFs. This could significantly alter the market and attract more investors.
NYSE Proposal for Ethereum ETFs
According to a March 20 filing, NYSE proposes to allow staking integration into the fund's structure. If approved, the fund could use a 'point-and-click' method to stake a portion of its Ethereum (ETH) while maintaining control over the assets. This approach lowers security risks by keeping the staked ETH in the wallet.
Low Interest in Ethereum ETFs
Ethereum ETFs launched in July 2024 but have attracted less interest than Bitcoin ETFs. As of March 20, Ethereum ETFs total $6.79 billion in net assets, with $84 million in outflows over the past week. In contrast, spot Bitcoin ETFs have amassed $94.47 billion in net assets.
Benefits of Ethereum Staking
Staking, introduced when Ethereum switched to proof-of-stake in 2022, allows ETH holders to lock up their tokens in exchange for rewards. With current yields ranging from 2% to 7% annually, it's a valuable investment. According to Coinbase, staking deposits have surpassed 33 million ETH, accounting for 27% of total circulating ETH. Staking might also improve Ethereum's market performance by attracting more institutional investors.
If NYSE receives approval for staking in its Ethereum ETFs, this could lead to increased demand for ETH and attraction of more investors, potentially positively impacting the cryptocurrency's market performance.
