- SEC delays in-kind crypto ETF decisions from VanEck and WisdomTree to June 3.
- Staking rule changes for ETH ETFs by Grayscale, Franklin, and Fidelity are under SEC review.
- All ETF proposals state full custody, validator control, and daily redemption support.
The U.S. Securities and Exchange Commission delayed key decisions on staking and in-kind redemptions for crypto ETFs until June. Proposals from VanEck, WisdomTree, Grayscale, Fidelity, and Franklin remain under review amid broader regulatory assessment.
SEC Holds Off on VanEck, WisdomTree ETF Decisions
As reported by Fox Business reporter Eleanor Terrett, the SEC delayed its decisions on in-kind redemptions until June 3. The update covers proposals from VanEck and WisdomTree, which filed to allow direct crypto-for-share redemptions in their Bitcoin and Ethereum spot ETFs. These in-kind structures bypass cash conversions, avoid taxable events, and improve market liquidity.
Additionally, filings by Cboe BZX Exchange requested rule amendments under Section 19(b)(1) and Rule 19b-4 of the Exchange Act. The SEC’s procedural extension triggered a new timeline for final rulings, now set for early June. No public comments were received, and the agency cited the need for more review time.
Staking Amendments Under Active SEC Review
The proposed filings detail changes to allow staking of ETH held in ETFs offered by Grayscale, Fidelity, and Franklin Templeton. The VanEck and Franklin amendments were filed by Cboe BZX Exchange, while NYSE Arca filed for Grayscale’s Ethereum Trusts. Each proposal adds staking language and removes restrictions previously barring ETH from validation participation.
The filings specify that sponsors will use regulated providers, retain full custody, and isolate staked assets from external clients. These providers will not solicit outside participation, and the validator infrastructure remains under custodial control. The goal is to preserve ETH trust integrity while earning on-chain rewards from Ethereum’s proof-of-stake mechanism.
Grayscale, Fidelity, Franklin Aim for On-Chain Integration
Grayscale’s staking proposal, filed by NYSE Arca, covers the Ethereum Trust and Mini Trust, with a decision deadline of June 1. Meanwhile, Fidelity’s and Franklin’s amendments focus on enabling native ETH staking through direct validator access using custodial wallets. These filings cite Ethereum’s Merge and the 32 ETH validator minimum.
Besides clarifying staking structures, the proposals explicitly separate them from SEC-cited violations tied to Kraken, Coinbase, and Binance programs. All amendments state that fund liquidity will remain intact to support daily redemptions without delays or operational disruptions. Each submission affirms compliance with Section 6(b)(5) of the Exchange Act.
