<ul data-eligibleForWebStory="true"><li>The SEC has paused the approval process for Bitwise's proposal to allow staking of Ethereum in its spot ETF due to increased scrutiny from regulators.</li><li>Staking Ethereum would offer additional returns by locking ETH to secure the blockchain, but the SEC has cited concerns regarding investor risks and conflicts of interest.</li><li>The SEC reopened the matter for public input to assess potential risks of market manipulation or inadequate investor protections associated with staking in exchange-traded funds.</li><li>Bitwise argues that staking in the ETF wouldn't compromise its structure or transparency and could enhance returns for both institutional and retail investors, but the SEC is focused on maintaining fair and orderly markets.</li></ul>

SEC Hits Pause on Ethereum ETF Staking Plan from Bitwise

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