Staking has become a significant challenge for the adoption of Ethereum-based ETFs.

According to Alex Thorne from Galaxy Research, the change in sentiment regarding the approval of ETFs based on Ethereum is due to a compromise reached between the SEC and issuers. They have agreed to remove staking from the applications.

Thorne mentioned that the Commission views staked Ethereum (sETH) as a security, but the underlying asset will not receive such a classification.

Previously, some companies had included the staking function in their updated applications. However, later on, some of these companies decided to abandon it. $ETH