US SEC Nears Decision on Grayscale Ethereum ETF Staking Proposal by May 26
The U.S. Securities and Exchange Commission (SEC) is reviewing a proposal that would add staking rewards to Grayscale’s Ethereum Exchange-Traded Funds (ETFs). A decision is expected by May 26, 2025 for institutional and retail investors.
The proposal, filed by NYSE Arca on February 14, 2025, seeks approval for Ethereum staking in the Grayscale Ethereum Trust ETF and the Grayscale Ethereum Mini Trust ETF. If approved it would be a big step towards staking in mainstream investment vehicles.
| Broker | Review | Regulators | Min Deposit | Website | |
|---|---|---|---|---|---|
| 🥇 |  | Read Review | FCA, CySEC, ASIC, MAS, FSA, EFSA, DFSA, CFTC | USD 100 | Visit Broker |
| 🥈 |  | Read Review | FSCA, FSC, ASIC, CySEC, DFSA | USD 5 | Visit Broker |
| 🥉 |  | Read Review | CySEC, MISA, FSCA | USD 25 | Visit Broker |
| 4 |  | Read Review | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB | USD 200 | Visit Broker |
| 5 |  | Read Review | ASIC, FCA, CySEC, SCB | USD 100 | Visit Broker |
| 6 |  | Read Review | FCA, FSCA, FSC, CMA | USD 200 | Visit Broker |
| 7 |  | Read Review | BVI FSC | USD 1 | Visit Broker |
| 8 |  | Read Review | CBCS, CySEC, FCA, FSA, FSC, FSCA, CMA | USD 10 | Visit Broker |
| 9 |  | Read Review | ASIC, CySEC, FSCA, CMA | USD 100 | Visit Broker |
| 10 |  | Read Review | IFSC, FSCA, ASIC, CySEC | USD 1 | Visit Broker |
How Grayscale’s Staking Proposal Works
Under the proposed model Grayscale’s Ethereum ETFs would stake a portion of their ETH holdings through trusted providers, earning staking rewards without changing the fund’s existing custody structure. Key points:
Custody & Security: Coinbase Custody will continue to hold the Ethereum assets, compliance with regulatory requirements.
Independent Management: The staking will be managed by the ETF’s sponsor only, no pooled staking with external entities.
Regulatory Oversight: The SEC’s review process includes a public comment period, 45 day initial review that could extend to 90 days.
If approved investors in the Ethereum ETF will be able to earn staking rewards while still being exposed to the underlying asset.
Regulatory Landscape and Industry Reactions
Grayscale’s staking proposal follows the broader industry trend. In March 2024 Fidelity proposed a similar structure but regulatory uncertainty delayed its approval. The SEC has long scrutinized staking, questioning if it’s an investment contract under U.S. securities laws.
But recently they have shown a very interested attitude towards staking, actively seeking industry expert input. Eleanor Terrett, a financial journalist, noted on X (formerly Twitter) that the SEC is very, very interested in staking.
The agency’s acknowledgement of Grayscale’s filing comes as other crypto regulatory moves. The SEC just accepted a staking proposal from 21Shares for its Core Ethereum ETF, staking is becoming more accepted in regulated products.
Expanding ETF Market and Future Outlook
Beyond Ethereum staking, Grayscale is also filing for a spot Cardano (ADA) ETF. If approved it would give institutional access to Cardano, solidifying its position as a top digital asset.And the SEC has also dropped their investigations into Robinhood’s crypto division and Uniswap. This could be a change of approach from the agency. This could impact how they look at staking in ETFs and set a precedent for future crypto products.
The decision is expected in the next few months. We will be watching. If approved it would be a new era of crypto ETFs. Staking rewards and traditional investment vehicles.
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