- SEC delays decision on Grayscale ETH staking ETFs, pushing review deadline to June 1.
- Grayscale proposes on-chain staking to boost ETF yield through validator rewards.
- Ether ETF inflows hit $2.28B, but the SEC has yet to approve any staking-enabled funds.
The U.S. Securities and Exchange Commission has delayed its decision on staking within Grayscale’s Ethereum ETFs, pushing the regulatory deadline from April 17 to June 1. The move extends uncertainty around Ether staking approval for U.S.-listed funds, which remains a key focus for institutional investors seeking on-chain yield through regulated products.
The extension was publicly announced on April 14 and follows NYSE Arca’s February request to permit staking across Grayscale’s Ethereum Trust and Mini Trust. As reported by Crypto Patel, the SEC has yet to approve staking for any ETF, keeping Grayscale’s proposal and similar plans from other issuers under continued regulatory review.
The SEC stated the extension allows additional review time for the proposed staking rule change. No public comments were submitted during the comment period following its March 3 publication. The Commission cited its authority under Section 19(b)(2) and Rule 200.30-3(a)(31) to take the action.
Grayscale ETH Funds Target Yield Through On-Chain Staking
The announcement outlines plans to stake Ether held within Grayscale’s Ethereum Trust and Mini Trust. These ETFs would use custodied ETH to participate in Ethereum’s proof-of-stake network and generate validator rewards.
Each fund offers direct exposure to spot Ether without using synthetic instruments, wrapped tokens, or futures contracts. Assets stay under regulated custody, with third-party custodians managing validator setup and private keys for the funds.
Staking rewards aim to add yield and grow long-term fund value for shareholders. According to Coinbase and Kraken, estimated Ether staking rewards range from 2% to 7%. Grayscale’s strategy brings on-chain returns into a fully regulated ETF structure.
Managers like BlackRock’s 21Shares also await approval to offer Ether staking in similar funds. However, the SEC has not approved staking for any U.S.-listed ETF as of mid-April. The delay could affect staking plans across multiple institutional crypto products.
SEC Extends Deadline Amid Expanding ETH ETF Developments
The Commission’s extension comes shortly after it approved options trading on multiple spot Ether ETFs, including Grayscale’s. On April 9, the SEC allowed options on Ether ETFs from BlackRock, Bitwise, and others.
Options approval expands Ether ETF utility but leaves staking questions unresolved. According to Sosovalue, Ether ETFs have seen $2.28 billion in inflows since 2024, compared to Bitcoin’s $35.4 billion. Grayscale’s staking proposal remains under review, with a final deadline near October. The SEC must take action by June 1 through approval, denial, or initiating formal review proceedings.
