The U.S. Securities and Exchange Commission (SEC) has delayed its decision on whether to approve staking in two Grayscale funds, influencing potential investor interest.
Deferred SEC Decision
The SEC announced that the decision on Grayscale Ethereum Trust ETF and Grayscale Ethereum Mini Trust ETF has been postponed until June 1, 2025, with a deadline for a decision by the end of October.
Staking Potential in ETFs
In February, the New York Stock Exchange (NYSE) filed a proposed rule change allowing investors in Grayscale's ETFs to stake their Ether. Staking involves locking up cryptocurrency in a wallet to support blockchain operations, potentially generating yield for investors and increasing the funds' attractiveness.
Approval for Options Trading
Despite the delay on staking filings, the SEC is moving forward with regulatory requests surrounding crypto ETFs. On April 9, the agency approved options trading for multiple spot Ether ETFs, broadening their utility for institutional investors. While Ether ETFs saw a net inflow of $2.2 billion, Bitcoin funds topped $35.4 billion since their launch in January 2024.
The delay in the SEC’s decision on staking in Grayscale funds may impact investment flows into these products. The approval of other trading aspects and the strong demand for Bitcoin ETFs highlight the contrasting attractiveness of different crypto assets.
