SEC Extends Crypto ETF Review Periods to June 2025

The US Securities and Exchange Commission (SEC) has extended the review periods for two proposed amendments related to crypto exchange-traded funds (ETFs), pushing the decisions on staking and in-kind redemption models into early June 2025. This delay affects Grayscale’s Ethereum (ETH) staking filing and VanEck’s filings for in-kind redemptions on Bitcoin (BTC) and Ether ETFs.

On April 14, the SEC announced that it would decide by June 1, 2025, whether to approve, disapprove, or initiate proceedings on the New York Stock Exchange (NYSE) request regarding Grayscale’s ETF. The proposal aims to allow the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF (ETH) to stake a portion of the ETH held in custody. The initial 45-day decision deadline was set for April 17, but the SEC extended the review period under Section 19(b)(2) of the Securities Exchange Act of 1934, citing the need for more time to evaluate the rule change and associated issues.

Additionally, the SEC postponed its decision on a separate proposal from Cboe BZX Exchange concerning in-kind creations and redemptions for the VanEck Bitcoin Trust (HODL) and VanEck Ethereum Trust (ETHV). The amendment, filed on Feb. 19 and published on March 5, seeks to revise the terms under which shares of the trusts can be created and redeemed using digital assets instead of cash. The initial 45-day review period was set to expire on April 19, but the Commission has extended it to June 3 to allow for further consideration.

According to federal filings, the Commission has not yet received public comments on either proposal. The June deadlines now provide an extended window for internal assessment or the potential initiation of proceedings to further evaluate the proposals’ compliance with applicable securities laws.

This delay in decision-making by the SEC underscores the regulatory challenges and scrutiny faced by the crypto industry. The extended review periods indicate that the SEC is taking a cautious approach, ensuring thorough evaluation of the proposed amendments before making any final determinations. The outcomes of these decisions will have significant implications for the future of crypto ETFs and the broader digital asset market.