Securities Commission Hesitates Over Cryptocurrency Staking ETFs, but Shifts May Be Imminent
The Securities and Exchange Commission (SEC) has taken a cautiously optimistic but deliberate stance on approving staking ETFs for Ethereum and Solana. The regulatory body has begun acknowledging filings that propose staking crypto assets within ETFs, signaling a shift towards acceptance, but final approvals are pending and expected mostly around early to mid-2026.
Current Status
The SEC accepted BlackRock's Ethereum staking ETF application in July 2025, allowing the iShares Ethereum Trust (ETHA) to stake its ETH holdings through trusted providers under Ethereum's proof-of-stake mechanism. This would generate an estimated 3.5% annual yield within the ETF, combining price gains with active income, marking the first U.S.-listed crypto ETF with staking income.
For Solana, the SEC pushed issuers to amend and refile spot Solana ETF applications by July 2025, hinting at faster approvals. An automatic approval for the REX-Osprey Solana Staking ETF occurred recently, and spot Solana ETFs are expected to join bitcoin and ether spot ETFs as approved crypto funds in the U.S.
Other staking ETFs, such as for Injective, have been filed but are still under review with decisions potentially not coming until March or April 2026 due to the SEC's extensive review timelines.
Potential Impact on Investors
Final approval of staking ETFs will likely expand institutional participation by offering yield-generating crypto exposure regulated within traditional investment vehicles. Staking ETFs for Ethereum and Solana would provide investors with a combined benefit of price appreciation and stable staking yield—around 3.5% for ETH—bridging a gap for crypto investors seeking income in a low-interest environment.
These ETFs could reshape the liquidity and demand for staked assets, potentially increasing staking participation rates and stabilizing ecosystem security for proof-of-stake blockchains. Approval would mark a significant legitimization milestone for crypto staking and ETFs, which may reduce investor uncertainty and attract broader participation from risk-averse investors preferring regulated products.
Summary
The SEC is progressing towards approving staking ETFs for Ethereum and Solana, with filings accepted and some products actively trading under staking-inclusive structures, but formal final approvals are mostly expected by Q1 or Q2 of 2026 due to the SEC's thorough review requirements. The cautious approach, reflecting concerns about staking practices and fund mechanics, preserves regulatory oversight while gradually opening the door for a new class of yield-bearing crypto ETFs.
Investors can anticipate that such products will enhance institutional adoption and provide innovative yield opportunities within regulated investment frameworks. This stance balances innovation and caution, indicating growing regulatory acceptance but requiring additional oversight before final approvals are granted.
It's important to note that staking is different from crypto lend-earn schemes as it is baked into the individual blockchains and carries less risk. Centralized exchanges often use third parties for staking, so it's important to understand how your platform stakes and who the staking provider is. Slashing penalties, a potential risk in staking, can cost you your staked crypto, although centralized exchanges may reimburse slashed crypto. Crypto ETFs, including potential staking ETFs for Ethereum and Solana, could make cryptocurrency more accessible to retail and institutional investors.
- As the Securities and Exchange Commission (SEC) approves staking ETFs for Ethereum and Solana, investors will have the opportunity to invest money in these ETFs, which will not only provide price appreciation but also stable staking yield.
- The anticipated approval of staking ETFs in Q1 or Q2 of 2026 will likely increase the participation of institutions due to the yield-generating crypto exposure offered within traditional investment vehicles, bridging a gap for investors seeking income in a low-interest environment.
- The introduction of staking ETFs for Ethereum and Solana, backed by technology, signifies a significant opportunity for investors looking to explore investing in finance, particularly in the burgeoning crypto market.
