Ethereum News Today: SEC Delays Invesco Galaxy Ethereum ETF Staking Decision to September 25

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on adding staking functionality to the Invesco Galaxy Ethereum ETF, as revealed in a July 30, 2025 filing. The agency cited the need for additional time to review the implications of integrating staking into the fund structure, which was initially proposed by Cboe BZX Exchange on June 9 and amended on June 23. The original deadline for a response had been August 11, but the new date is now set for September 25 [1]. The delay underscores the SEC's continued cautious approach toward innovations in the crypto asset space, particularly those involving active participation mechanisms like staking [1].

This development occurs amid a growing trend of staking-enabled ETF proposals from major players. On the same day the Invesco filing was announced, Nasdaq submitted a separate proposal to add staking to BlackRock’s Ethereum ETF. The filing outlines a framework that would permit either direct staking or delegation of staking rights to third-party custodians [2]. These parallel efforts highlight the strategic importance of staking in enhancing the yield potential of institutional crypto investments and signal increasing competition among ETF providers to gain regulatory approval first.

If approved, the Invesco Galaxy Ethereum ETF with staking functionality would mark a significant evolution in how institutional investors interact with Ethereum. Unlike traditional ETFs, which are limited to passive asset holding, the new version would allow the fund to earn block rewards through Ethereum’s proof-of-stake mechanism. However, the SEC has not yet clarified how it will regulate or define the legal structure of such earnings, which raises concerns about custody, control, and risk management [1].

The Invesco delay is not an isolated incident. The SEC has similarly extended its evaluation of the Grayscale Solana ETF, pushing its decision to October 2025. Multiple firms, including Invesco Galaxy and Grayscale, have submitted applications for Solana-based ETFs, creating a competitive race for regulatory approval [3]. This trend indicates a broader push among institutional players to expand their exposure to a wider range of digital assets through structured, regulated investment vehicles.

Analysts have noted that the SEC’s prolonged review periods suggest ongoing internal discussions regarding the legal and structural nuances of staking. While the agency has shown openness to in-kind creation and redemption mechanisms in Bitcoin and Ethereum ETFs, the introduction of staking introduces new variables, particularly related to custody and control of digital assets [4]. The SEC has also established a 240-day review period for novel products, which may delay approvals until late 2025 in many cases [5].

Public sentiment and market discussions have been influenced by these developments. Discussions across crypto platforms have focused on the potential for staking-enabled ETFs to redefine the institutional crypto landscape. While some investors view these proposals as a sign of maturing markets and regulatory acceptance, others remain cautious, concerned about regulatory ambiguity and market volatility [6].

The outcome of these filings could set a precedent for the broader approval and integration of proof-of-stake mechanisms in institutional investment products. As the SEC continues to evaluate staking proposals, its approach will likely influence not only the structure of future ETFs but also the broader institutional adoption of proof-of-stake cryptocurrencies.

Source:

[1] Coindoo – [https://coindoo.com/sec-delays-decision-on-staking-addition-to-invesco-galaxy-ethereum-etf/](https://coindoo.com/sec-delays-decision-on-staking-addition-to-invesco-galaxy-ethereum-etf/)

[2] FastBull – [https://m.fastbull.com/news-detail/sec-filing-starts-countdown-on-blackrock%C2%B4s-ethereum-etf-4337437_0](https://m.fastbull.com/news-detail/sec-filing-starts-countdown-on-blackrock%C2%B4s-ethereum-etf-4337437_0)

[3] Bitrue – [https://www.bitrue.com/blog/solana-etf-war-invesco-vs-grayscale-sec-delay](https://www.bitrue.com/blog/solana-etf-war-invesco-vs-grayscale-sec-delay)

[4] AInvest – [https://www.ainvest.com/news/solana-news-today-cboe-bzx-submits-application-invesco-galaxy-solana-etf-sec-2507/](https://www.ainvest.com/news/solana-news-today-cboe-bzx-submits-application-invesco-galaxy-solana-etf-sec-2507/)

[5] AInvest – [https://www.ainvest.com/news/solana-news-today-cboe-files-staked-inj-etf-sec-clarifies-staking-rules-2507/](https://www.ainvest.com/news/solana-news-today-cboe-files-staked-inj-etf-sec-clarifies-staking-rules-2507/)

[6] CryptoDnes.bg – [https://cryptodnes.bg/en/santiment-highlights-6-most-discussed-altcoins-amid-crypto-volatility/](https://cryptodnes.bg/en/santiment-highlights-6-most-discussed-altcoins-amid-crypto-volatility/)