The New York Stock Exchange has filed a proposal with the Securities and Exchange Commission to allow it to stem funds trading on the Bitwise Ethereum Exchange.
The proposal seeks regulatory approval to integrate staking into the structure of the ETF, according to a submission to the SEC on March 20th. This amendment, if approved, allows bets on a portion of Ethereum (ETH) using a method known as “point and click” stake, known as “point and click” stake, while still maintaining control of the asset. This approach reduces security risks by ensuring that ETH remains stained in the wallet.
Ethereum ETFs were launched in July 2024, but interest in them is lower than that of Bitcoin (BTC) ETFs. As of March 20, Ethereum ETF’s total net worth was $67.9 billion, but the cumulative outflow over the past seven days was $84 million. In contrast, the Spot Bitcoin ETF has earned $94.47 billion in total net worth assets.
At the Digital Assets Summit on March 20, BlackRock’s Digital Asset Manager Robbie Mitchnick said the Heateryum ETF is not attractive due to the absence of compensation. He emphasized that staking is an integral part of Ethereum and an important tool of profit for investors. By enabling staking, Mitchnick said, it could show a major change in Ethereum ETFs, attracting more investors.
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Introduced when Ethereum switched to certification stakes in 2022, stakes allow ETH holders to lock tokens in exchange for rewards. Current yields range from 2% to 7% per year, making them a valuable investment. Meanwhile, ETH staking deposits account for 27% of the total ETH supply in circulation, according to Coinbase data, exceeding 33 million ETH.
In addition to ETFs, staking could improve Ethereum’s market performance. ETH has fallen 47% from $1,990 from $4,105 to $1,990 from its December high, making it one of the lowest performing major cryptocurrencies. If ETFs are allowed to take stakes, demand for ETH could increase as more institutional investors enter the market.
read more: Crypto Exchanges’ Ethereum supply will be delayed by 10 years. Will ETH prices recover?
