SEC delays decision on Grayscale ETH-ETF staking
SEC delays staking decision for Grayscale ETH-ETF
The U.S. Securities and Exchange Commission has delayed its decision on whether to allow Ethereum staking in Grayscale’s Ethereum Trust ETF and Ethereum Mini Trust ETF.
Initially, the NYSE had proposed a rule change on February 14 that would permit investors holding these funds to stake their ETH, thereby earning rewards—an attractive proposition given Coinbase’s estimated annual staking yield of 2.4% and Kraken’s range of 2% to 7%. However, according to an announcement made on April 14, the SEC has postponed the decision on staking until June 1, with the final deadline now set for October 2025. This move reflects the commission’s cautious approach to integrating additional crypto utility features amid fluctuating market conditions and regulatory uncertainties.
Rising options trading and market dynamics
While the staking decision is on hold, the SEC is making progress in other areas of crypto regulation. On April 9, it approved options trading on multiple spot Ether ETFs, including funds managed by BlackRock, Bitwise, and Grayscale. This approval grants institutional investors the ability to use derivatives, potentially increasing market liquidity and hedging strategies. Despite these advancements, the performance of Ether remains a concern. The cumulative net inflow in Ether ETFs reached $2.2 billion as of April 11, significantly lower than the $35.4 billion flowing into Bitcoin ETFs, highlighting a disparity in investor appetite. Furthermore, Ether’s price has struggled during the current bull market, trading below $2,000 as of April 14, after failing to recapture its previous peaks.
Looking forward, market participants will closely monitor the eventual decision on Ether staking, which could unlock additional yield opportunities and further enhance the appeal of Ethereum-based financial products. The industry now awaits further regulatory clarity, as the SEC continues to balance innovation with investor protection in the rapidly evolving digital assets landscape.
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