The SEC has begun reviewing a proposal from NYSE Arca to allow staking activities within the Grayscale Ethereum Trust ETF and Grayscale Ethereum Mini Trust ETF. The ruling is expected by May 26, 2025.

On February 14, 2025, NYSE Arca filed a request to modify rules to allow Grayscale Ethereum funds to stake ETH through trusted providers and earn rewards.

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Both ETFs are already trading in the market. The Grayscale Ethereum Trust ETF was approved by the SEC in May 2024, and the Grayscale Ethereum Mini Trust ETF was approved in July 2024.

Staking Process and Regulatory Framework

The proposed changes include that staking will only be carried out by Grayscale. ETH will not be combined with other institutions and third-party staking services will not be marketed.

There will be no changes to the current custody regulations, with Coinbase Custody continuing to safeguard the ETH assets in the ETFs.

The SEC will subject the proposal to a public review process. The initial decision deadline is 45 days but can be extended up to 90 days from the publication date.

In March 2024, Grayscale Investments proposed adding staking features to its spot Ethereum ETF but faced regulatory hurdles. Fidelity also made a similar attempt during the same period.

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