SEC acknowledges Grayscale Ethereum ETF staking proposal, decision expected by May

Grayscale seeks to enhance returns through ethereum staking, adding new dimensions to their ETF offerings.

Key Takeaways

• The SEC is reviewing NYSE Arca’s proposal for staking activities in Grayscale Ethereum Trust ETFs, with a decision before May 26, 2025.
• The proposal allows the Trusts to stake ether through trusted providers, earning rewards as income without changing the custody arrangement.

The SEC started reviewing NYSE Arca’s proposal to allow staking activities for the Grayscale Ethereum Trust ETF and Grayscale Ethereum Mini Trust ETF, with a decision expected before May 26, 2025.

NYSE Arca filed the proposed rule change on February 14, 2025, which would enable the Trusts to stake Ethereum tokens through trusted providers and earn rewards in ether tokens as income.

Both ETFs are currently active on the market, with the SEC having approved the Grayscale Ethereum Trust in May 2024 and the Grayscale Ethereum Mini Trust in July 2024.

Under the proposed amendment, staking would be conducted exclusively by the Sponsor, without pooling ETH with other entities or marketing staking services.

The custody arrangement will remain unchanged, with Coinbase Custody continuing to secure the ETH holdings.

The SEC’s review includes a public comment period, with an initial 45-day decision timeline that could extend up to 90 days from the notice publication.

In March 2024, Grayscale Investments proposed adding staking to its spot Ethereum ETF, following Fidelity’s lead, but faced regulatory complexities.

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