Bitwise has been actively encouraging recognizing staking as part of its admitted Ethereum Exchange Traded Fund (ETF). We think that this proposed addition would not be difficult to incorporate into the existing ETF structure. The firm shamelessly asserts that adding staking to the mix will increase investors’ returns. None of this change would require any major shifts in how the fund is administered. This proposal further illustrates Bitwise’s long-standing support of staking as an overall positive and value-add component in the ETF wrapper.

Bitwise argues that the existing ETF framework can easily be applied to allow for the addition of staking. They argue that adding staking would provide investors with the benefit of earning yield on their investments. This yield enhancement would therefore be a direct result of this staking mechanism built into the ETF.

In addition to the specifics of staking, Bitwise guarantees that the fund’s fundamental mechanics would still be in place even with the adoption of staking. The firm is convinced that staking can be included without interfering with the basic mechanics of the ETF. This assertion is central to Bitwise's argument, aiming to demonstrate that staking can be a value-added feature without compromising the fund's stability or operational integrity.

Bitwise’s staking proposition highlights its confidence in staking’s compatibility within the ETF space with the long-standing ETF model. By introducing staking, investors will realize added return upside while the fund’s core structure and objective are largely unchanged. The firm continues to look for new, creative ways to build better ETF experiences. In a further reflection of the industry’s zeitgeist, they are most excited about combining staking and other yield-generating mechanisms.