The post SEC Reviews Grayscale Ethereum ETF Staking Proposal with May Decision Expected appeared on BitcoinEthereumNews.com.

TLDR SEC acknowledged NYSE Arca filing for Grayscale’s Ethereum ETFs to earn staking rewards Proposal maintains custodial control with staked ETH not leaving wallet holdings Grayscale expanding crypto ETF portfolio with recent XRP, Cardano, and Polkadot filings SEC expected to make decision by May 26, 2025, with up to 90-day review period possible Staking would be done exclusively by Grayscale without pooling ETH with other validators The Securities and Exchange Commission (SEC) has acknowledged a filing from NYSE Arca that would allow Grayscale’s Ethereum exchange-traded funds to earn staking rewards. The proposal, submitted on February 14 and published by the SEC on February 25, 2025, seeks to enable the Grayscale Ethereum Trust ETF and Grayscale Ethereum Mini Trust ETF to participate in Ethereum’s proof-of-stake validation system. Under the proposed rule change, Grayscale would stake a portion of the ETFs’ Ethereum holdings through trusted staking providers. These providers could include the current custodian or its affiliates but would not include any Grayscale affiliates. The proposal specifies that the staking process would be managed solely by Grayscale as the fund’s sponsor, without pooling Ethereum with other entities. “The Sponsor may, from time to time, stake a portion of the Trust’s Ethereum on behalf of the Trust through one or more trusted staking providers,” the filing reads. This approach differs from “delegated staking” services that have faced regulatory challenges in the past. A key aspect of the proposal is that staked Ethereum would remain under custodial control, addressing security concerns that have previously complicated regulatory approval for such activities. “Staking by the sponsor will not result in the Ethereum held by the Trust moving out of the custody of the Custodian,” the filing explains. “This process does not involve the staked Ethereum leaving the wallet at which it is held.” The ETFs would…

---

Filed under: News - @ February 26, 2025 2:19 pm