Ethereum News Today: SEC Stalls Grayscale's Staking Push as Global ETFs Outpace U.S. Rivals

Grayscale Investments has initiated staking for its Ethereum-based exchange-traded funds (ETFs), locking 32,000 ETH-valued at approximately $150 million-across its Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Mini Trust (ETH) funds on October 6, 2025. The move, which enables investors to earn staking rewards from Ethereum, marks a significant step in enhancing returns for ETF holders. ETHE will distribute staking rewards as cash payouts, while ETH will reinvest rewards into the fund's net asset value (NAV), compounding growth over time Grayscale Launches First Staking Spot Crypto ETPs in U.S.^[3].

The staking initiative follows a regulatory delay by the U.S. Securities and Exchange Commission (SEC), which postponed its decision on approving staking for Grayscale's ETFs until June 1, 2026, with a final deadline of October 2025 SEC delays staking decision for Grayscale ETH ETFs^[1]. This delay aligns with broader regulatory scrutiny of crypto products, as the SEC evaluates the integration of staking into ETF structures. Meanwhile, other jurisdictions, including Hong Kong, Canada, and Europe, have already permitted staking in ETFs, creating a competitive edge for non-U.S. markets SEC Stalls on Staking Decision: Final Deadline for …^[4].

Grayscale's staking feature leverages institutional custodians like Coinbase and a network of validator providers to secure Ethereum's proof-of-stake network. The firm, which manages $35 billion in assets under management (AUM), emphasized that the innovation aligns with its mission to deliver value to investors in the evolving digital asset ecosystem Grayscale Launches First Staking Spot Crypto ETPs in U.S.^[3]. However, initial inflows into Grayscale's ETFs were modest, with ETHE and ETH attracting $14.8 million and $18.7 million, respectively, compared to BlackRock's iShares Ethereum Trust (ETHA), which recorded $92 million in inflows on the same day Grayscale Begins Staking 32,000 ETH for Spot ETFs, Could Boost …^[7].

BlackRock's ETHA, the largest Ethereum ETF by assets under management, has seen sustained institutional demand, with total inflows exceeding $18.5 billion as of October 2025. The fund's share price surged 4.47% to an all-time high of $35.79, driven by a $2 billion trading volume Grayscale Begins Staking 32,000 ETH for Spot ETFs, Could Boost …^[7]. This performance underscores the competitive landscape for Ethereum ETFs, where BlackRock's established market presence and regulatory alignment have positioned it ahead of newer entrants like Grayscale.

The market response to staking-enabled ETFs has been mixed. While Grayscale's launch coincided with a 4% rally in Ethereum's price to $4,707, the broader Ethereum ETF sector faces challenges in attracting capital compared to Bitcoin ETFs. Bitcoin spot ETFs have amassed $45.34 billion in assets, dwarfing Ethereum's $3.33 billion . Analysts attribute this disparity to Ethereum's slower adoption and the absence of staking features in earlier Ethereum ETFs, which limited their appeal to yield-seeking investors Grayscale Begins Staking 32,000 ETH for Spot ETFs, Could Boost …^[7].

Looking ahead, the success of staking-enabled Ethereum ETFs will hinge on regulatory clarity and market conditions. The SEC's final decision on Grayscale's staking proposal in October 2025 could determine the pace of adoption, while Ethereum's price performance and broader macroeconomic factors will influence investor sentiment. For now, Grayscale's initiative highlights the growing integration of crypto into traditional finance, though it remains to see whether it can close the gap with industry leaders like BlackRock.