SEC Considers Staking Rewards for Ethereum and Solana ETFs
- Amended S-1 statements filed with the SEC indicate potential for staking Ethereum and Solana in ETFs.
- If approved, ETFs could earn staking rewards from validating transactions on proof-of-stake blockchains.
- Current staking rewards are approximately between 3% to 4% for Ethereum and between 7% to 8% for Solana annually.
- ETF management fees typically range from about 0.20% to 0.30%, potentially allowing yields to surpass these costs.
- The SEC’s consideration follows months of lobbying by ETF issuers for regulatory clarity on staking income.
The inclusion of staking language in ETF filings suggests a possible shift in the SEC’s approach, driven by pressure to align U.S.-listed products with global yield opportunities available in decentralized finance (DeFi). This change could redefine competition among ETF issuers by focusing on net yield alongside management costs.
With Ethereum’s staking rewards at around 3%-4% and Solana’s at 7%-8%, integrating these rewards into ETFs may create new investment metrics for crypto funds.(Source)
