NYSE Proposes Allowing ETH Staking in Grayscale’s Spot Ether ETFs
Asset manager Grayscale has filed to introduce staking in its spot Ether ETFs, emphasizing that it will not guarantee or promote any specific level of returns for investors. The New York Stock Exchange (NYSE) submitted the proposal to the U.S. Securities and Exchange Commission (SEC) on behalf of Grayscale, seeking regulatory approval to incorporate staking into its Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH).
If approved, the proposal would allow Grayscale’s ETFs to stake Ether ($ETH) and earn staking rewards. However, the company clarified that these rewards would be treated as fund income rather than a guaranteed return for investors.
Grayscale’s filing emphasized that its staking approach would not constitute “delegated staking” or be considered a “staking-as-a-service” model. Instead, staking would be used to help the funds generate additional ETH and more closely track Ethereum’s natural yield from staking activities.
Additionally, the introduction of staking is expected to enhance the ETFs' efficiency, particularly in their creation and redemption process, while offering investors additional benefits. Currently, crypto exchange Coinbase estimates Ethereum’s staking reward rate at 2.06%, which could provide a steady yield for Grayscale’s ETFs.
Grayscale’s move follows a similar filing by 21Shares, which recently became the first asset manager to seek SEC approval for staking in its spot Ether ETF. The CBOE BZX Exchange submitted the application on behalf of 21Shares, indicating that staking could soon become a key feature of multiple spot Ether ETFs.
Historically, the SEC has been hesitant about allowing staking in spot ETH ETFs. In July 2024, before approving spot Ether ETFs, the regulator required issuers to remove staking rewards from their proposals. As a result, 21Shares dropped its initial staking plans in May 2024 to secure approval for its fund.
However, this policy may be reversed under a potentially more crypto-friendly SEC during a Donald Trump administration. Industry experts, including Jito and Multicoin Capital, have suggested that the SEC may now be open to reconsidering staking in Ethereum and other crypto asset ETPs (Exchange-Traded Products).
“We understand the [SEC] staff may now be amenable to revisiting staking in ETH and other crypto asset ETPs, including in connection with new applications filed for a SOL ETP,” Jito and Multicoin Capital stated.
This shift indicates that Solana-based ETFs (SOL ETPs) could also explore staking opportunities, expanding the role of staking in regulated crypto investment products.
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