SEC Reviews Grayscale Ethereum ETF Staking

SEC Reviews Grayscale Ethereum ETF Staking Proposal

The Securities and Exchange Commission (SEC) is reviewing a proposal from NYSE Arca to allow staking activities within Grayscale's Ethereum Trust ETFs. A decision is anticipated before May 26, 2025.

Key Takeaways

• The SEC is actively reviewing NYSE Arca's proposal regarding staking within Grayscale's Ethereum Trust ETFs (including the Grayscale Ethereum Mini Trust ETF).
• This proposal would allow the Trusts to stake Ether (ETH) via trusted providers, generating staking rewards as additional income without altering the existing custody arrangements.

NYSE Arca submitted this proposed rule change on February 14, 2025. The proposal details how Grayscale would utilize trusted providers for staking, earning ETH rewards for investors. Importantly, the ETH custody arrangement will remain unchanged, with Coinbase Custody maintaining secure asset management.

Both the Grayscale Ethereum Trust and the Grayscale Ethereum Mini Trust are currently trading. The SEC previously approved the Grayscale Ethereum Trust in May 2024 and the Grayscale Ethereum Mini Trust in July 2024.

The SEC's review process includes a public comment period. The initial review timeline is 45 days, with the possibility of extension to 90 days from the notice publication date. This follows Grayscale's March 2024 proposal to incorporate staking into its spot Ethereum ETF, a move that faced initial regulatory hurdles. This latest development could significantly impact the future of Ethereum ETFs and the broader cryptocurrency market.

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