Ethereum News Today: Grayscale's Staking ETPs Highlight SEC's Regulatory Delays in U.S. Market

Grayscale Investments has made a significant move in the crypto ETF space by enabling staking for its Ethereum and Solana exchange-traded products (ETPs), marking the first instance of U.S.-listed spot crypto ETPs offering this featureGrayscale Adds Staking to Ethereum and Solana Investment^[1]. The firm activated staking for its Grayscale Ethereum Trust ETF (ETHE), Grayscale Ethereum Mini Trust ETF (ETH), and Grayscale Solana Trust (GSOL), allowing investors to generate yield from these assets without directly managing the underlying cryptocurrenciesGrayscale Adds Staking to Ethereum and Solana Investment^[1]. This innovation aligns with growing demand for income-generating crypto products, as annual staking rewards for Ethereum range between 2% and 7% across platforms like Coinbase and KrakenGrayscale Adds Staking to Ethereum and Solana Investment^[1]. Grayscale's decision positions it as a first-mover in the U.S. market, where regulatory uncertainty has previously delayed similar features for competing funds.

The U.S. Securities and Exchange Commission (SEC) remains a critical bottleneck in the broader adoption of staking within Ether ETFs. Despite Grayscale's proactive steps, the agency has delayed its decision on whether to approve staking in its Ethereum Trust and Mini Trust ETFs, with a final deadline set for October 2025Grayscale Adds Staking to Ethereum and Solana Investment^[1]. This delay affects not only Grayscale but also in-kind redemption proposals from WisdomTree and VanEck, keeping U.S. investors from accessing ETH staking rewardsGrayscale Adds Staking to Ethereum and Solana Investment^[1]. The SEC's cautious approach contrasts with jurisdictions like China Hong Kong, Canada, and Europe, where staking is already permitted in ETF productsGrayscale Adds Staking to Ethereum and Solana Investment^[1]. The agency's hesitation underscores ongoing regulatory debates about the classification of staking rewards and their compliance with existing securities frameworks.

Grayscale's staking initiative has immediate financial implications for its ETPs. The firm's Ethereum Trust and Mini Trust manage a combined $8.25 billion in assets under management, while its Solana Trust holds $122.5 millionGrayscale Adds Staking to Ethereum and Solana Investment^[1]. By enabling staking, Grayscale aims to enhance the appeal of these products in a market where Ethereum ETFs have struggled to match the inflows of Bitcoin counterparts. Ether ETFs have seen cumulative net inflows of $2.28 billion since their 2024 launch, compared to $35.4 billion for Bitcoin fundsGrayscale Adds Staking to Ethereum and Solana Investment^[1]. The addition of staking could close this gap by offering investors a passive income stream, a feature that has driven adoption in other blockchain networks like Solana.

The regulatory landscape for crypto ETFs is evolving rapidly, with the SEC's recent approval of generic listing standards for spot commodity ETFs accelerating product launches. This framework allows exchanges to list ETPs backed by assets like Solana and XRP without individual case-by-case approvals, provided they meet predefined criteria such as trading on Intermarket Surveillance Group (ISG) markets or underlying regulated futures contracts. The move has cleared the path for Solana spot ETFs, as Coinbase's regulated futures contracts have already met the six-month requirement. Analysts predict a surge in new crypto ETFs, including staking-focused and index-based products, as exchanges capitalize on streamlined approval processes.

Market reactions to these developments have been mixed. While Ethereum and Solana prices have seen modest gains in recent weeks-ETH trading near $4,581 and SOL at $233-the broader adoption of staking features remains constrained by regulatory uncertaintyGrayscale Adds Staking to Ethereum and Solana Investment^[1]Breaking: Grayscale Enables Staking for Crypto ETPs Ahead of US SEC Approval^[2]. Institutional demand, however, appears robust, with crypto funds recording $5.95 billion in inflows last weekBreaking: Grayscale Enables Staking for Crypto ETPs Ahead of US SEC Approval^[2]. The SEC's delayed rulings on staking and in-kind redemptions have created a regulatory limbo, leaving U.S. investors at a disadvantage compared to their global counterparts.

Grayscale's staking initiative highlights both the potential and challenges of integrating blockchain innovations into traditional finance. By offering yield-generating ETPs, the firm is addressing investor demand for diversified crypto exposure while navigating a complex regulatory environment. However, the SEC's cautious stance on staking underscores the need for clearer guidelines to ensure compliance with securities laws. As the October 2025 deadline approaches, the agency's decision will likely shape the future of Ether ETFs and influence the broader adoption of staking in U.S. markets.