SEC Delays Decision on Grayscale’s Ethereum ETF Staking Proposal Until July 2025
The U.S. Securities and Exchange Commission (SEC) has announced a delay in its decision on whether to approve staking as part of Grayscale’s proposed Ethereum spot ETFs—a move that continues the agency’s cautious approach toward evolving crypto investment products.
The proposed funds, the Grayscale Ethereum Trust and the Grayscale Ethereum Mini Trust ETF, were filed by NYSE Arca on February 14, 2025. A key element of the filing is a rule change request that would allow the ETFs to engage in Ethereum staking, potentially enabling them to earn rewards through Ethereum’s proof-of-stake consensus mechanism.
Originally, the SEC was expected to issue a ruling by April 17, but under the Securities Exchange Act of 1934, the agency can extend its review period by up to 90 days. That option has now been exercised, giving the SEC until July 2025 to make a final determination.
If approved, Grayscale’s proposal would mark the first time staking is permitted within a U.S.-listed spot crypto ETF. Grayscale has emphasized that, under the plan, staking operations would be handled solely by the fund sponsor, with no commingling of investor assets. Coinbase Custody is slated to continue safeguarding the ETH holdings, ensuring a familiar infrastructure for regulators and investors alike.
The SEC’s latest delay is not unexpected. It reflects a broader trend in how regulators are treating crypto ETFs that aim to incorporate features like staking, lending, or yield generation. Several asset managers have submitted similar proposals, all of which remain under review amid ongoing discussions about investor protection, risk transparency, and market integrity.
Grayscale, a long-time player in the crypto asset management space, has previously pushed for innovation in digital asset products. This proposal follows its recent success converting the Grayscale Bitcoin Trust into a spot Bitcoin ETF—an effort that was greenlit earlier this year after legal challenges and regulatory pushback.