- The SEC delayed its decision on Grayscale’s request to enable staking in its Ethereum ETFs, with a new review date set for June 1 and a final deadline in October 2025.
- The ruling delay also affects in-kind redemption proposals from WisdomTree and VanEck, keeping potential ETH yield products on hold for US investors.
- While global markets like Hong Kong, Canada, and Europe permit ETF staking, the SEC remains cautious, leaving US ETF holders unable to access ETH staking rewards for now.
The Securities and Exchange Commission (SEC) just hit the brakes on two critical upgrades that ETF issuers have been pushing for: staking for Ethereum and in-kind redemptions.
According to an April 15 update, the SEC delayed ruling on whether WisdomTree’s Bitcoin Fund (BTCW) and VanEck’s Bitcoin and Ethereum Funds (BITB and ETHW) can offer in-kind redemptions.
It also pushed back its decision on a proposal from Grayscale to allow staking in its Ethereum Trust (ETHE) and Mini Ethereum Trust (ETH), originally filed via NYSE Arca in February. The new deadlines are June 3 for in-kind redemptions and June 1 for staking.
Grayscale first proposed staking back in February through a New York Stock Exchange filing, aiming to let ETF holders lock up ETH for passive rewards. The pitch is simple: staking could turn the funds into income-generating products, potentially boosting their appeal in a market where Ether is underperforming.
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Missing Out on ETH Staking
Staking might be all about yield for crypto users, but it’s a problematic topic in the regulatory field, and it doesn’t look like the SEC is going to move its heels faster on whether it wants retail ETF investors anywhere near it.
What’s more frustrating is not that the SEC has not approved staking for any spot Ether ETFs, but other jurisdictions have, such as Hong Kong, Canada, and Europe, which have allowed staking in ETF products.
Annual staking rewards on ETH currently range between 2% and 7%, depending on the platform. Coinbase advertises 2.37%, while Kraken offers a wider spread between 2.5% and 7%.
But until the SEC gives the green light, those rewards remain out of reach for ETF holders.
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