Bit Digital Expresses ‘Thrill’ About Ethereum ETF, But Emphasizes Lack of Staking Features
BitDigital expressed optimism about the launch of a spot Ethereum (ETH) ETF, but cautioned on July 16 that the fund would not feature staking.
The firm said it was “excited by the increased normalization and adoption” around Ethereum and the technology’s potential to reshape the financial system. Bit Digital also argued that an ETF could be a significant price catalyst for ETH in the coming months.
However, Bit Digital noted the limitations of the funds, stating:
“It is important to note that ETH ETFs cannot stake and profit from the full potential of ETH.”
Bit Digital mentions its website, which identifies the company as the only publicly traded Bitcoin miner that stakes Ethereum. The company uses its BTC mining rewards to ETH and stakes them. It then redistributes its ETH staking rewards to add more sustainable Bitcoin miners, completing the cycle.
Bit Digital also revealed that it holds over 29,000 ETH (USD), making it the largest holder of ETH among Nasdaq-listed companies.140 million).
The company said BTBT shares provide “exposure to the smart contract economy.”
Suspend ETF Applicant Staking
Some spot ETH ETF applicants attempted to include ETH staking in their proposals around February. They sought to treat staking rewards as income for the fund.
However, the applicants reportedly removed the staking plan from the application in order to meet the SEC’s expected approval requirements around May. Since then, a spot ETH ETF has received initial approval without allowing staking.
Bloomberg ETF analyst Eric Balchans sees the SEC giving issuers the green light to launch a fund on July 22, with the fund likely to begin trading on July 23.
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Assad Jafri
AJ has been a passionate journalist for over 10 years, honing his skills globally since the Arab Spring in Yemen in 2011. He specializes in financial journalism and currently focuses on cryptocurrency reporting.
