NYSE files for SEC approval to allow staking for Grayscale's Ethereum ETFs
NYSE files for SEC approval to allow staking for Grayscale's Ethereum ETFs
NYSE Arca has filed a proposal with the SEC to permit staking for Grayscale’s spot Ethereum ETF, marking a potential turning point in crypto-asset management. The filing, submitted on Friday, targets the Grayscale Ethereum Mini Trust ETF—which holds just under $1.3 billion in assets with 477,428 ETH under custody by Coinbase.
Key Takeaways
- NYSE Arca has filed with the SEC to allow staking for Grayscale’s spot Ethereum ETF, potentially boosting investor returns.
- The proposal targets the Grayscale Ethereum Mini Trust ETF, which holds nearly $1.3B in assets and 477,428 ETH managed by Coinbase.
- This move follows a broader industry trend, with similar staking requests from other exchanges and a task force led by SEC Commissioner Hester Peirce.
- Approval could enable Ethereum ETFs to generate additional yields while distinguishing safer “point-and-click” staking from riskier models.
Under the proposed framework, the fund would earn staking rewards on the ETH it holds, with a portion of those rewards being passed to investors. This move contrasts with previous SEC prohibitions under former Chair Gary Gensler, which barred staking activities in ETH-based exchange-traded products due to securities law concerns.
Total Ethereum spot ETF net inflow. Source: Coinglass
Industry momentum and future prospects
The NYSE Arca filing joins similar initiatives from other exchanges, such as Cboe BZX Exchange’s recent request to allow staking in its 21Shares Core Ethereum ETF. Acting SEC Chair Mark Uyeda has appointed Commissioner Hester Peirce to lead an agency task force aimed at revising crypto policy. The task force, which has already met with representatives from Multicoin Capital and Jito Labs, is working to develop clear regulatory guidelines that would distinguish “point-and-click” staking from riskier, delegated staking models. By involving only the ETH held by the fund and a dedicated custodian, NYSE Arca contends that its staking approach avoids the pitfalls associated with traditional staking services.
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As the SEC evaluates these proposals, industry observers are watching closely. Approval could enable Ethereum ETFs to generate additional returns, further integrating digital assets into mainstream finance and potentially setting a precedent for other crypto investment products.
