SEC Delays Decision on Grayscale’s Ethereum ETF Staking Proposal

BE[IN]CRYPTO
04-14
  • SEC delays decision on Grayscale’s Ethereum ETF staking proposal beyond the initial April 17 deadline.
  • Proposal seeks approval to allow staking for Grayscale Ethereum Trust and Mini Trust ETFs via Coinbase Custody.
  • Extension signals caution as regulators assess implications of staking within spot crypto ETFs.

The SEC has delayed its decision on whether to allow staking for Grayscale’s proposed Ethereum spot ETFs. 

The ETFs in question—Grayscale Ethereum Trust and Grayscale Ethereum Mini Trust ETF—were filed by NYSE Arca on February 14, 2025. The filing included a rule change request to enable staking as part of their investment strategy.

SEC Pushes Back Grayscale Ethereum ETF Staking Deadline July

The SEC deadline for deciding on the original proposal was set to conclude on April 17. Under the Securities Exchange Act of 1934, the SEC is authorized to extend this review period for up to 90 days. 

The agency has now exercised that option. This now allows the SEC to decide on this filing by July 2025. 

Staking would allow the ETFs to earn rewards by participating in Ethereum’s proof-of-stake consensus mechanism, a feature not yet approved for any US spot crypto ETF. 

Grayscale has proposed that staking be conducted exclusively by the sponsor without commingling funds. Also, Coinbase Custody would continue safeguarding the ETH assets.

The SEC’s delay is part of a broader pattern of cautious regulatory scrutiny over crypto ETF innovations, including similar filings from other asset managers. 

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