- The SEC has delayed its decision on Grayscale’s Ethereum ETF staking proposal until July 2025.
- Grayscale wants to allow staking without mixing investor funds, with Coinbase Custody still holding the ETH.
- The delay reflects the SEC’s ongoing cautious stance toward crypto ETF features like staking.
So, here’s the latest twist in the crypto ETF saga — the SEC just hit the brakes on Grayscale’s plan to bring staking into the mix for its Ethereum-based ETFs.
Grayscale’s two ETFs — the Grayscale Ethereum Trust and its Mini Trust version — were originally filed by NYSE Arca back on Feb. 14. The key thing? They wanna add staking to the strategy, which would let them earn passive rewards from Ethereum’s proof-of-stake system. Cool in theory, but the SEC isn’t quite ready to say yes.
The original deadline for the agency to make a decision was April 17. But, surprise surprise, the SEC pulled out its playbook and extended the review period — legally they get up to 90 more days under the Securities Exchange Act of 1934. Now, they’ve pushed the final decision out to sometime in July.
Why the holdup?
Well, staking in a U.S.-listed crypto ETF is kind of uncharted territory. No one’s pulled it off yet. Grayscale’s pitch is that staking would be done only by the sponsor (no co-mingled assets), and Coinbase Custody would keep holding the ETH as usual.
Still, the SEC’s clearly not in a rush. This isn’t the first time they’ve dragged their feet on something like this. There’s been a string of similar delays and cautious reviews from other ETF issuers trying to add new crypto features. Regulatory red tape? Kinda feels like it.
