SEC delays decision on Grayscales Ethereum EtF Staking proposal

Von Sophie Müller

  • The SEC announced that she would postpone her decision on the Grayscale ETFs by June 1st.
  • A final date for the decision is set for the end of October.
  • The market performance of ether in the current bull market has decreased compared to the competitors.

The US Securities and Börsenkommission (SEC) has postponed its decision as to whether the Ethher staking is allowed within two Ethereum funds from Grayscale, and thus extended a process that is observed closely by the participants of the cryptom market and asset control.

In a message dated April 14, the SEC announced that it would postpone its decision on the Grayscale Ethereum Trust ETF and the Grayscale Ethereum Mini Trust ETF by June 1st.

A final date for the decision is set for the end of October. The delay takes place two months after the New York stock exchange has submitted a proposed application for control in the name of Grayscale.

It would enable the investors of Ether ETFs to stake their stocks and block cryptocurrencies to support the network operations in exchange for income.

Staking yields have become an important characteristic for potential ether ETF investors.

Coinbase currently offers an estimated annual return of 2.4 % on clocked ether, while the rates on octopuses are between 2 % and 7 %.

Ether ETFs have received a comparatively modest demand since their debut in 2024, with cumulative net inflows of $ 2.28 billion according to Sosovalue - a sharp contrast to Bitcoin ETFs that have attracted over $ 35.4 billion in traces.

The race for Ethereum-Staking

Grayscale is not only in his striving. Blackrocks 21Shares Ishares Ethereum Trust also submitted an application for staking permits in February and is waiting for the approval of Sec.

The delay underlines the continued regulatory caution in relation to staking services in listed products, even if other aspects of crypto-ETFs make progress.

On April 9, the SEC approved the option trade for several Spot Ether ETFs, including that of Blackrock, Bitwise and Grayscale.

This step enables this fund to offer derivative exposure.

This feature extends its attraction to institutional actors, but does not solve the core problem of generating income from staking.

Ether-UNDER Performance

The market performance of Ether has decreased in the current bull market compared to the competitors.

as of April 14, the token remains below $ 2,000, far from its 52-week high of $ 4,112 and still Shy from its all-time high in November 2021 of $ 4,866

This underperformance is contrasting with other digital assets such as XRP and Solana, both of which have recorded stronger profits in the latest rally.

The subdued demand for Ether ETFs compared to its Bitcoin objects, together with the relatively weak price movement of ether, reflects the restraint of investors in view of regulatory ambiguities and market fluctuations.

The persistent delays of the SEC in relation to staking permits only increase this uncertainty for the time being.

The article SEC Delays Call on Grayscale’s Ethereum Etf Staking Proposal first appeared on Coinjournal.