SEC Clarifies Staking Rules Boosting ETH ETF Inflows 125 Million

On June 11, Gracy Chen, CEO of Bitget Global, expressed her bullish stance on Ethereum (ETH) via X, citing three consecutive weeks of net inflows into ETH ETF products as evidence of strong investor demand. Chen highlighted that the SEC’s recent guidance on crypto staking could unlock a significant cycle for ETH, following the SEC’s May 29 statement that clarified various staking models do not violate securities law.

The U.S. Securities and Exchange Commission (SEC) clarified on May 29 that crypto staking practices are exempt from securities registration. This decision directly impacts the ETH ETF landscape, where staking has been a contested issue. The regulatory update included provisions that enhancements like slashing protection or asset bundling do not automatically qualify staking as a securities transaction. SEC Commissioner Hester Peirce supported the move, emphasizing staking as a foundational component of proof-of-stake networks. However, SEC Commissioner Caroline Crenshaw opposed the interpretation, warning that the guidance dismisses the Howey Test.

Ethereum spot ETFs have recorded nine straight days of net inflows as of June 10, with a total net inflow reaching $125 million on that day alone. Among the ETH ETF products, Blackrock’s ETHA led with a single-day inflow of $80.5864 million, bringing its historical net inflow to $4.971 billion. Fidelity’s FETH followed with a $26.3205 million inflow on June 10, bringing its total to $1.555 billion. The total net asset value of all ETH ETF products amounts to $10.650 billion, with the net asset ratio currently sitting at 3.18%.

Nate Geraci, President of the ETF Store, described the SEC’s staking update as a regulatory milestone, noting that it removes a key roadblock for ETH ETF issuers looking to incorporate staking models. Despite this progress, Geraci called for further clarity from the Internal Revenue Service (IRS), particularly around how staking rewards will be taxed in ETF structures.

SEC’s position on staking alters the outlook for ETH ETF development. If staking is integrated within these ETFs, fund managers could unlock additional yield streams. This shift may encourage higher institutional participation in ETH ETF markets, especially from investors seeking both capital appreciation and staking rewards. Regulatory clarity could also enhance Ethereum’s credibility among traditional financial institutions. However, concerns persist due to ongoing internal disagreements at the Commission and the SEC’s stance remaining vulnerable to legal challenges or political shifts.

ETH ETF products are currently witnessing sustained demand, supported by regulatory clarity and institutional interest. Gracy Chen’s endorsement reinforces optimism around Ethereum’s future, particularly if staking becomes part of ETF offerings. The new SEC guidance may accelerate the next phase of Ethereum adoption in mainstream markets. Combined with growing inflows and improved transparency, ETH ETF structures now present a more compelling investment proposition. Market analysts anticipate that further regulatory decisions, especially from the IRS, will shape the long-term viability of staking-integrated ETFs. Until then, the ETH ETF market is poised for continued growth, buoyed by investor appetite and improved policy support.