SEC Weighs Grayscale's Ethereum Staking Proposal

The U.S. Securities and Exchange Commission (SEC) has acknowledged a proposal by Grayscale Investments to allow staking activities for its Ethereum Trust ETF and Ethereum Mini Trust ETF. The decision on the proposal is expected by May 26, 2025.

NYSE Arca, the exchange operator, filed the proposed rule change on February 14, 2025. The proposal aims to enable the Trusts to stake Ethereum tokens through trusted providers, earning rewards in ether tokens as income. Both ETFs are currently active on the market, with the SEC having approved the Grayscale Ethereum Trust in May 2024 and the Grayscale Ethereum Mini Trust in July 2024.

Under the proposed amendment, staking would be conducted exclusively by the Sponsor, without pooling ETH with other entities or marketing staking services. The custody arrangement will remain unchanged, with Coinbase Custody continuing to secure the ETH holdings.

The SEC's review includes a public comment period, with an initial 45-day decision timeline that could extend up to 90 days from the notice publication.