Bitwise and 21Shares Eye Staking Integration in Ethereum and Solana ETFs Amid SEC Review

Two of the largest names in digital asset management — Bitwise and 21Shares — have taken a bold step toward merging decentralized finance incentives with traditional markets. Both firms have amended their Ethereum (ETH) and Solana (SOL) ETF filings with the U.S. Securities and Exchange Commission (SEC) to include provisions for staking, a move that could reshape how crypto ETFs operate in the U.S.

The updated S-1 filings, submitted earlier this week, mark the first time major ETF issuers have formally signaled intent to generate on-chain rewards within their funds. If the SEC gives the green light, these ETFs would not only hold ETH and SOL but also participate in validating blockchain transactions — earning staking rewards that could be passed on to investors.

This development follows months of discreet engagement between ETF sponsors and regulators over the treatment of staking income. While the inclusion of staking language doesn’t confirm regulatory approval, it does highlight a potential softening of the SEC’s once rigid stance on staking activities by U.S.-registered funds.

Industry observers suggest this could be a watershed moment for crypto-based ETFs. The move could make products like Bitwise’s Ethereum ETF and 21Shares’ Solana ETF more competitive globally, especially when compared to overseas offerings that already include yield-generating mechanisms. Current annual returns from staking average 3–4% for Ethereum and 7–8% for Solana, significantly higher than the 0.20–0.30% management fees typical of these funds.

If implemented, staking could transform the competitive landscape of crypto ETFs. Rather than focusing purely on liquidity and expense ratios, investors may soon weigh net yield performance, blurring the line between passive ETF investing and active network participation.

Though the SEC has not issued a formal statement on the amendments, these filings signal a potential convergence of DeFi yield mechanisms with regulated financial products — a development that could redefine how traditional investors gain exposure to blockchain economies.