Grayscale Seeks SEC Nod for Staking in Spot Ethereum ETFs

Grayscale Files to Introduce Staking in Spot Ethereum ETFs

The New York Stock Exchange (NYSE) has submitted a filing to the U.S. Securities and Exchange Commission (SEC) on behalf of asset manager Grayscale, seeking approval to incorporate staking into its spot Ethereum ETFs. If approved, Grayscale’s Ethereum Trust ETF (ETHE) and Ethereum Mini Trust ETF (ETH) would be able to participate in Ethereum’s staking mechanism, potentially allowing the funds to generate additional yield from staked Ether. The filing, submitted on Feb. 14, aligns with a broader shift toward integrating staking into regulated investment products.

Grayscale emphasized that while the funds may earn staking rewards, it will not market or guarantee any fixed return to investors. The company clarified that staking will be managed directly by the fund and not through a third-party “staking as a service” provider.

According to Grayscale, integrating staking could enhance the efficiency of its spot Ethereum ETFs by improving the creation and redemption process, tracking Ether’s returns more accurately, and benefiting investors through passive income from staking rewards. Estimates from Coinbase suggest that Ethereum staking currently offers an approximate annual yield of 2.06%.

Grayscale’s move follows a similar proposal from asset manager 21Shares, which recently filed for permission to stake Ether within its spot Ethereum ETF. The Chicago Board Options Exchange (CBOE BZX) applied to the SEC on behalf of 21Shares, marking the first attempt to introduce staking into a U.S.-regulated spot Ether ETF.

Before the SEC approved spot Ether ETFs in mid-2024, issuers were required to remove staking provisions from their proposals. 21Shares, for example, had initially included staking in its filing but was forced to drop the feature in May 2024 to gain regulatory approval.

However, with the SEC’s leadership shifting under the Trump administration, the agency appears more open to revisiting staking within exchange-traded products. Market participants speculate that the SEC’s stance on staking could evolve under new leadership, potentially opening the door for other crypto asset ETFs, including those based on Solana (SOL), to incorporate staking mechanisms.