SEC delays staking decision for Grayscale ETH ETFs

Key Points

  • The SEC has delayed a decision on Ether staking for Grayscale's Ethereum Trust ETF and Ethereum Mini Trust ETF until June 1, with a final deadline in October 2025.
  • Staking could potentially increase the attractiveness of Ether ETFs by generating yield for investors, with annual yields on staked Ether estimated at 2.4% to 7% on major exchanges.
  • Despite the delay in staking decisions, the SEC has approved options trading for multiple spot Ether ETFs, enhancing their utility for institutional investors.

Summary

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on whether to allow Ether staking in two of Grayscale's funds, the Ethereum Trust ETF and the Ethereum Mini Trust ETF, until June 1, with a final deadline set for October 2025. This delay follows the SEC's approval of options trading for several Ether ETFs, indicating a mixed approach to regulatory advancements in the crypto space. Staking, which involves locking up cryptocurrency to support blockchain operations and earn rewards, is seen as a key feature that could enhance the appeal of Ether ETFs by providing additional yield to investors. The potential yield from staking on platforms like Coinbase and Kraken ranges from 2% to 7%. Despite Ether ETFs attracting $2.28 billion since their launch in 2024, they lag behind Bitcoin ETFs in terms of investor inflows. The broader market context shows Ether struggling to reach its previous highs, trading below $2,000 as of April 14, 2025, amidst a bull market where other assets like XRP and Solana have performed better.

cointelegraph
April 15, 2025
Crypto
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