The U.S. Securities and Exchange Commission (SEC) is evaluating a proposal that could permit staking within Grayscale’s Ethereum ETF.
SEC's Consideration of Staking in ETFs
The SEC has officially confirmed its review of Grayscale’s proposal, which aims to integrate staking within its Ethereum ETFs. The filing states that staked ETH would remain under the ETF’s direct management, ensuring assets are not pooled with external parties. This structure would allow the fund to receive staking rewards without altering existing custody agreements.
Previous Efforts and Regulatory Considerations
Grayscale has been exploring staking within its Ethereum ETF for over a year. In March 2024, it introduced a similar staking model; however, regulatory uncertainties delayed progress. The SEC has historically expressed concerns about staking, particularly its classification under U.S. securities laws. Recent developments indicate that the SEC has been engaging with industry participants to examine staking models.
Investment Climate Around Cryptocurrencies
The SEC’s review of Grayscale’s staking proposal follows its recent acceptance of a similar rule change from 21Shares for its Core Ethereum ETF. This suggests the agency is considering staking within regulated investment products. Additionally, Grayscale has filed for a spot in Cardano (ADA) ETF, which is currently under SEC review. The SEC has also dropped investigations into Robinhood’s crypto unit and Uniswap.
The SEC's review of Grayscale's staking proposal could transform the approach to regulated investment products in the cryptocurrency market.
