A decision regarding the approval of Grayscale Ether ETFs staking has been postponed by the US Securities and Exchange Commission (SEC).
The SEC announced on April 14 that the Grayscale Ethereum Trust ETF and Grayscale Ethereum Mini Trust ETF decision would be delayed until June 1. A decision must be made by the end of October.
US SEC Delays Grayscale Ether ETFs Approval
On behalf of Grayscale, the New York Stock Exchange (NYSE) submitted a proposed rule change on February 14 that would allow investors to stake their holdings in the company’s Ether ETFs.
To maintain the functionality and security of a blockchain network, staking is the process of locking up cryptocurrency in a wallet and rewarding stakers. The feature is an essential component of Ether ETFs since it can increase the funds’ appeal by giving investors a yield.
Staked Ether yields between 2% and 7% annually on Kraken, another US-based exchange, and 2.4% on Coinbase. Since their introduction in 2024, Ether ETFs have seen a total net inflow of $2.28 billion, according to Sosovalue.
Other asset managers, such as BlackRock’s 21Shares iShares Ethereum Trust, are competing for staking on Ether ETFs. In February, the business requested authorization to provide staking services and is awaiting agency approval.
Other spot Ether ETF options are approved by the SEC
The SEC is proceeding with regulatory requests about crypto ETFs despite the postponement of staking filings. The agency authorized options trading for several spots Ether ETFs on April 9, enabling the derivates to feature on funds from Bitwise, Grayscale, and BlackRock ETFs.
Trading options entail contracts that grant investors the right, but not the responsibility, to purchase an asset at a specific price. Thanks to the approval, institutional investors can now widely use the funds.
The attempts to broaden the appeal of Ether ETFs reflect their lack of uptake compared to Bitcoin ETFs, which were introduced in January 2024. According to Sosovalue, Bitcoin fund flows exceeded $35.4 billion, while the Ether ETFs saw a net cumulative inflow of $2.2 billion as of April 11.
In contrast to other assets like XRP and Solana, ether has also struggled during this bull market. The asset’s 52-week high of $4,112 fell short of its all-time high in November 2021.
