What is the current status of the SEC’s decision regarding staking for the Grayscale spot Ethereum ETF?
SEC Delays Decision on Staking for Grayscale’s Ethereum ETFs
The U.S. Securities and Exchange Commission (SEC) has postponed its decision regarding Grayscale’s proposal to introduce staking through its spot Ethereum ETFs. This much-anticipated move had been closely watched by crypto investors and market observers.
What Does Grayscale’s Staking Plan Involve?
Asset management giant Grayscale aims to stake Ether (ETH) through its Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH). The strategy is designed to allow these funds to generate income from staking rewards.
On February 14, 2025, the application was submitted to the SEC on behalf of Grayscale by the New York Stock Exchange (NYSE Arca). The filing noted that ETH would be staked through trusted third parties, with no changes to the current custodial setup.
If approved by the SEC, these ETFs could generate additional income from staking rewards — potentially introducing a new yield model for spot Ethereum ETF products.
SEC Moves to Extend Decision Timeline
However, following its initial 45-day review period, the SEC opted not to issue an immediate decision. Instead, it extended the timeline to gather more public input and further analyze the proposal. During this extended period, the SEC is expected to examine whether the staking activities align with existing securities laws.
This delay highlights the SEC’s cautious stance on staking, while a future approval of Grayscale’s request could represent a significant milestone for crypto investment products.
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