The New York Stock Exchange (NYSE) has filed with the U.S. Securities and Exchange Commission (SEC) on behalf of asset manager Grayscale, seeking approval to introduce staking in its spot Ethereum exchange-traded funds (ETFs).
According to a filing on February 14, Grayscale aims to stake Ether within its Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH).
If approved, staking would allow these funds to earn rewards, which would be classified as income for the ETFs.
Grayscale Won’t Guarantee Returns on Staking in Ethereum ETF Filing
The filing clarified that Grayscale would not guarantee or advertise specific returns from staking activities.
“The Sponsor’s staking activities 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 emphasized that enabling staking would help the funds better track the returns associated with holding Ether and provide additional benefits to investors.
The move follows a similar filing by 21Shares, which recently became the first asset manager to apply for staking within its spot Ether ETF.
The application, submitted by CBOE BZX Exchange, marked a shift from earlier restrictions imposed by the SEC.
Before approving spot Ether ETFs in July 2024, the SEC required issuers to remove staking rewards from their proposals.
21Shares initially dropped staking from its ETF application in May 2024, just months before gaining approval. However, a potential policy shift under a more crypto-friendly SEC could now open the door for staking.
According to Jito and Multicoin Capital, industry discussions suggest that SEC staff may be reconsidering staking for Ethereum-based ETFs and other crypto asset exchange-traded products (ETPs), including a possible Solana (SOL) ETP.
Gary Gensler’s Departure Sparks Rise in Crypto ETF Filings
Just recently, asset management firm 21Shares officially filed with the U.S. Securities and Exchange Commission (SEC) to introduce a spot Polkadot ETF.
The filing comes at a pivotal time for the SEC and cryptocurrency ETFs, following the resignation of SEC Chair Gary Gensler on Jan. 20.
Gensler, known for his cautious stance on crypto regulations, stepped down amid increasing pressure for greater regulatory clarity in the digital asset space.
Likewise, Tuttle Capital Management filed applications for ten cryptocurrency-based leveraged ETFs, including funds tied to popular meme coins.
Analysts suggest the filings are part of a broader strategy to test the boundaries 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).
Furthermore, Osprey Funds and REX Shares have filed for meme coin ETFs covering Dogecoin (DOGE), Official Trump ($TRUMP), and Bonk (BONK) on Jan. 21.
Meanwhile, the SEC has also granted initial 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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