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The New York Stock Exchange (NYSE) has submitted a request to the U.S. Securities and Exchange Commission (SEC) on behalf of asset manager Grayscale, seeking authorization to implement staking in its spot Ethereum exchange-traded funds (ETFs).
According to a filing dated February 14, Grayscale intends to stake Ether within its Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH).
If approved, staking would enable these funds to generate rewards, which would be classified as income for the ETFs.
Grayscale Will Not Guarantee Returns on Staking in Ethereum ETF Filing
The filing specified that Grayscale would not guarantee or promote specific returns from staking activities.
“The Sponsor’s staking actions on behalf of the Trust will not constitute ‘delegated staking’ and will not form part of a ‘staking as a service’ offering,” the company stated.
Grayscale also highlighted that enabling staking would assist the funds in better tracking the returns associated with holding Ether and provide additional advantages to investors.
NEW: @Grayscale & @NYSE just filed with the SEC to allow their Ethereum ETFs ( $ETHE & $ETH) to start staking the Ether they hold.
(21Shares & CBOE filed for this earlier this week) pic.twitter.com/3iF0OMaPSA— James Seyffart (@JSeyff) February 14, 2025
This action follows a similar application by 21Shares, which recently became the first asset manager to seek staking within its spot Ether ETF.
The application, submitted by CBOE BZX Exchange, represented a departure from previous restrictions set by the SEC.
Prior to the approval of spot Ether ETFs in July 2024, the SEC mandated that issuers exclude staking rewards from their proposals.
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21Shares initially removed staking from its ETF application in May 2024, just months before receiving approval. However, a potential policy shift under a more crypto-friendly SEC may now facilitate staking.
According to Jito and Multicoin Capital, industry discussions indicate that SEC staff may be reevaluating staking for Ethereum-based ETFs and other crypto asset exchange-traded products (ETPs), including a possible Solana (SOL) ETP.
Gary Gensler’s Departure Sparks Increase in Crypto ETF Filings
Recently, asset management firm 21Shares officially filed with the U.S. Securities and Exchange Commission (SEC) to introduce a spot Polkadot ETF.
This filing occurs at a crucial moment for the SEC and cryptocurrency ETFs, following the resignation of SEC Chair Gary Gensler on January 20.
Gensler, known for his cautious approach to crypto regulations, stepped down amid increasing pressure for greater regulatory clarity in the digital asset sector.
Similarly, Tuttle Capital Management submitted applications for ten cryptocurrency-based leveraged ETFs, including funds linked to popular meme coins.
Analysts suggest that these filings are part of a broader strategy to explore the limits of an SEC under Trump-era crypto-friendly regulators.
The proposed ETFs include leveraged funds that aim to deliver twice the returns of their underlying assets, such as the meme coins Official Trump ($TRUMP) and Melania Meme ($MELANIA).
Additionally, Osprey Funds and REX Shares have filed for meme coin ETFs covering Dogecoin (DOGE), Official Trump ($TRUMP), and Bonk (BONK) on January 21.
Meanwhile, the SEC has also granted preliminary approval for Bitwise Asset Management’s Bitcoin and Ethereum ETF, which would track both BTC and ETH in a single fund.
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