SEC Postpones Decision on Grayscale’s Ethereum Staking ETF Until June 1, 2025
Key Takeaways:
- The SEC has postponed its ruling on Grayscale’s request to permit Ethereum staking in its ETFs.
- Citing the need for additional assessment, the deadline has been pushed to June 1, 2025.
- Should it be allowed, this action might let ETF holders gain from Ethereum staking incentives.
A major update Grayscale filed on Ethereum staking via its exchange-traded funds (ETFs) has had the U.S. Securities and Exchange Commission (SEC) review period lengthened. The proposal, which would let some of the Ethereum held by the ETFs be staked, will now wait for a final decision by June 1, 2025.
This delay reflects the SEC’s careful attitude on including staking elements into controlled investment products, even if institutional and retail investors are increasingly interested in proof-of-stake (PoS) yield possibilities.
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SEC has postponed the proposal for a Grayscale Ethereum staking ETF
The SEC published an official notice on April 14, 2025, saying it will prolong Grayscale’s proposed rule change review period concerning the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF. Originally filed by NYSE Arca on February 14 and published in the Federal Register on March 3, the rule change set off an initial 45-day review deadline ending on April 17.
The SEC has now pushed the deadline to June 1, 2025, citing the need for more time to assess the possible consequences of staking within an ETF framework. Under Section 19(b)(2) of the Securities Exchange Act of 1934, which allows the Commission to take up to 90 days if more review is judged required, this extension was granted.
The notification said, “The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change.”
No public comments have been received on the proposal to date.
Read More: SEC Issues Guidance on Proof-of-Work Mining and Securities Regulation
What the Proposal Entails
Grayscale is looking for permission to let both its Mini Trust and Ethereum Trust ETFs stake some of their ETH holdings. Staking under Ethereum’s present PoS scheme lets users lock up their ETH in validator nodes in return for yield, usually in the form of newly minted ETH or transaction fees.
Grayscale’s Ethereum ETFs are now passively holding ETH and not involved in staking. Should the suggested change be accepted, it would be a major change since it would allow the funds to produce more returns by means of staking—returns passed on to ETF investors together with any possible ETH market value rise.
Why This Matters for the Crypto ETF Market
Setting a Regulatory Precedent
A favorable SEC decision could set a precedent for future staking-related ETF proposals. It would offer clarity on how staking rewards are treated within the regulatory framework for investment products and whether such activity is permissible under existing securities laws.
It could also pave the way for ETF issuers to design new fund structures that incorporate staking as a key feature. However, if the proposal is denied, it would reinforce the SEC’s cautious stance on crypto products involving yield generation, despite increasing interest from the market.
Grayscale’s Broader Strategy
Grayscale has been a consistent player in pushing for regulated crypto investment vehicles in the U.S. market. The company has filed for several crypto-related ETFs in the past, including those tied to Litecoin and XRP, although those efforts have yet to gain approval.
By pursuing staking integration into its Ethereum ETFs, Grayscale is positioning itself at the forefront of regulated access to PoS-based yield—something no U.S.-listed ETF currently offers.
The Road Ahead
The SEC now has until June 1, 2025, to either approve, deny, or begin further proceedings on the Grayscale staking amendment. Until then, both institutional stakeholders and crypto enthusiasts will be watching closely for signs of the Commission’s evolving position on integrating on-chain features like staking into traditional financial products.
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