Bitwise and 21Shares just added staking language to their SEC filings — a subtle move that could bridge DeFi yield and regulated finance, reshaping how crypto ETFs earn returns.
Ethereum and Solana ETFs May Soon Include Staking Rewards
In a development that could reshape how crypto exchange-traded products generate income, Bitwise and 21Shares quietly amended their S-1 filings to allow staking for their proposed Ethereum and Solana ETFs.
The updates, submitted to the SEC this week, hint at a subtle but meaningful evolution in how regulated funds might interact with blockchain networks.
Staking refers to the process of locking tokens to help validate transactions on a proof-of-stake blockchain, earning yield in return for securing the network. If approved, these ETFs could participate directly in that process, generating staking rewards rather than simply holding coins passively.
Ethereum’s current staking yield ranges from 3 to 4 percent, while Solana’s can reach 7 to 8 percent, a potential new source of income that could offset or even exceed ETF management fees.
Why It Matters
Allowing staking inside ETFs would bridge decentralized finance with regulated capital markets, making on-chain yield accessible to traditional investors for the first time. It would also push ETF issuers to compete not just on fees and liquidity but on net yield, creating a new performance metric rooted in blockchain economics.
Reader Lens
For investors, this small line in an SEC filing signals a big shift. Staking turns crypto from a speculative asset into a productive one, much like owning dividend-paying stocks or interest-bearing bonds. If approved, it would mark another step in crypto’s institutional evolution, where network participation itself becomes an accepted, yield-generating component of mainstream portfolios.
