The New York Stock Exchange (NYSE) has taken a significant step towards enhancing the Ethereum ecosystem by proposing a rule change that allows staking on Grayscale’s spot Ether ETFs. This development marks a pivotal moment for asset managers and investors alike, as Grayscale aims to introduce staking in its Ethereum Trust fund. However, the company emphasizes that it will not guarantee or promote any specific level of returns for investors.
In a filing submitted to the US Securities and Exchange Commission (SEC), Grayscale articulated that the permission to stake ETH within the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF (ETH) could revolutionize how these funds operate. The proposed staking activities are set to generate rewards that would be considered a source of income for the funds, ultimately benefiting the investors involved.
The filing clarified that Grayscale’s staking activities will not constitute “delegated staking” nor will they form part of a “staking as a service” offering. By allowing the Trusts to directly stake their Ether, Grayscale aims to enhance the creation and redemption process of its spot Ether ETFs, thereby increasing efficiency and providing significant advantages for investors.
Interestingly, this proposal comes shortly after 21Shares also filed a similar initiative for staking in its spot Ether ETF. Industry insiders suggest that the SEC, which had previously asked issuers to refrain from earning staking rewards in approved spot Ether ETFs, may now be reconsidering its stance under new regulatory conditions.
With predictions of a potential shift towards a more crypto-friendly SEC, experts speculate that this regulatory support could pave the way for a broader acceptance of staking within Ethereum-based exchange-traded products (ETPs) — potentially including staking for other cryptocurrencies like Solana. As the crypto landscape evolves, both Grayscale and 21Shares are poised to reshape investment strategies and stakeholder benefits in the Ethereum market.
