The U.S. Securities and Exchange Commission (SEC) has announced that it is once again extending the timeframe for consideration of Grayscale’s proposed rule change. This adjustment applies to the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF. We’re thrilled to hear this news from Grayscale, which they made public on April 14, 2025. Next steps Now the SEC has until June 1, 2025 to approve, deny or take other action on Grayscale’s staking amendment. The proposal asks for an order that would allow the Mini Trust and Ethereum Trust ETFs to stake a portion of their ETH holdings. This change would allow ETF investors to enjoy lucrative Ethereum staking rewards.

The SEC's decision to prolong the review highlights the agency's cautious approach to incorporating staking elements into regulated investment products. While this delay is an indication that we should take time to thoroughly consider the possible ramifications of introducing staking in an ETF format, considering the current surge in demand for PoS yield products from both institutional and retail investors, such an evaluation is necessary. Grayscale’s proposal is an important step toward broader regulated access to PoS-based yield. Today, there are no U.S.-listed ETFs that offer this capability.

SEC's Deliberation on Ethereum Staking

Grayscale’s filing is the most significant development yet in the much-anticipated Ethereum staking coming through its exchange-traded funds (ETFs). The SEC’s key issue seems to be the intricacies and risks of staking in a complicated ETF wrapper.

The SEC’s longer review period provides necessary time to more carefully explore these factors, while protecting investors and maintaining stable markets. The critical question is whether we can harmonize staking with an ETF. We have to be sure it can stand up to regulatory scrutiny and most importantly, serve the best interest of investors.

The SEC is obviously taking a close look at the operational, custodial, and valuation implications of having staking in an ETF. With this additional review period, the SEC is looking to arrive at the smartest decision possible that will promote innovation while safeguarding investors.

Grayscale's Position and Market Impact

Grayscale has been a long-time, vocal advocate for the development of regulated crypto investment vehicles in the U.S. marketplace. This latest proposal is a rare, bold continuation of that commitment. Both the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF hold Ethereum passively at present. As it stands today, they are not staking.

If approved by the SEC, Grayscale’s proposal would not only benefit its own proposal but create a favorable precedent for other future ETF proposals related to staking. A positive ruling would open the floodgates for other asset managers to bring similar products to market. This change could fundamentally alter the state of crypto investment in the United States.

This shows that Grayscale is strategically positioning itself as an on-ramp for regulated access to PoS-based yield. Grayscale continues to lead the way in putting investors first. They remain committed to providing safe, cutting-edge and regulated solutions for consumers to participate in the growing digital asset landscape.

Implications for Investors and the Crypto Market

The SEC’s final ruling, whatever it may be, on Grayscale’s proposal will have far-reaching consequences — either positive or negative — for investors and the larger crypto industry. The proposal permits part of the Ethereum portfolio held by the ETFs to be staked. Once signed, it will look for a final decision by June 1, 2025.

If the applications are approved, holders of the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF will soon begin to receive staking rewards. This would extend even to their own ETH treasury. This would increase the attractiveness of these ETFs while pouring more capital into the Ethereum ecosystem.

The result of this review will undoubtedly impact the shape of any U.S. staking-related investment products in the future. A favorable ruling would likely encourage more innovation and wider adoption of PoS-based investment strategies.