The U.S. Securities and Exchange Commission (SEC) has delayed its decision on whether to allow Ether staking in two ETFs, including the Grayscale Ethereum Trust.
What Is Staking and Why It Matters
Staking is the process where individuals lock up their cryptocurrency in wallets to support the operation of a blockchain network. The opportunity to earn rewards makes staking attractive to investors. Grayscale submitted a request for Ether staking in February through the New York Stock Exchange.
Strong Interest in Ether ETFs
Despite the absence of staking, Ether ETFs have already attracted over $2.28 billion in investments since their debut in 2024. This shows a strong interest in the market, although it is still significantly lower than the $35.4 billion poured into Bitcoin ETF during the same period.
Ethereum's Market Struggles
Despite advancements in the ETF space, Ether has not performed as well as other cryptos, such as XRP and Solana. In April 2023, Ethereum traded below $2000, remaining well below its all-time high of $4866 reached in November 2021.
The SEC's delay indicates a cautious approach towards staking, while options trading is currently permissible. Over the coming months, the Ether ETF market will continue to evolve, with the upcoming SEC decision being closely watched.
