SEC Postpones Decision on Ethereum Staking in Grayscale ETFs

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on a staking proposal related to Grayscale’s planned Ethereum ETFs. The new deadline is June 1, when it will become clear whether the funds will be permitted to use Ethereum in the proof-of-stake process.

Grayscale wants to open ETH ETFs for staking

On February 14th, NYSE Arca filed an application with the SEC: The Grayscale Ethereum Trust ETF and the Grayscale Ethereum Mini Trust ETF will be able to participate in Ethereum staking in the future – while maintaining the existing custody mechanisms. Staking in this context means bringing ETH tokens into the network to support the validation of transactions and receive rewards for doing so.

Why the SEC is hesitating

The SEC responded two weeks after the application was submitted and now has until June 1 to either approve, deny, or initiate an official review process. The agency originally raised concerns about staking when it approved spot ETH ETFs last year.

The decision comes at a time of growing geopolitical tensions and market uncertainty. The entire crypto market lost around 3% of its value last month, with Ethereum alone falling by 15% to currently around $1,640.

Regulatory change under new leadership

Under President Donald Trump, the tone toward digital assets has changed. Since the appointment of Paul Atkins, an outspoken crypto advocate, as the new SEC chairman, several lawsuits against companies such as Coinbase, Ripple, and Kraken have already been dropped. This raises hopes that the staking project will also get the green light.

ETF analysts remain optimistic

According to Bloomberg analyst James Seyffart, a positive decision could even come before the final deadline at the end of October. The SEC’s recent approval of Ethereum ETF options could be an indication that staking will also be approved soon.

Conclusion: Patience is required – but the trend is moving forward

Whether Grayscale will actually be allowed to open its Ethereum ETFs for staking remains to be seen. However, the signs point to a relaxation – which could be a medium-term trend-setter not only for Ethereum, but also for the entire crypto ETF market.

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