The Securities and Exchange Commission (SEC) has delayed its decision on whether to approve Ether staking in two Grayscale funds. The decision on Grayscale Ethereum Trust ETF and Grayscale Ethereum Mini Trust ETF has been postponed until June 1, according to an April 14 announcement from the SEC. The final deadline for a decision is the end of October.
On February 14, the New York Stock Exchange (NYSE) submitted a request on behalf of Grayscale that would permit investors in the company’s Ether ETFs to stake their holdings. Staking is the process of locking up cryptocurrency in a wallet to support the operations and security of a blockchain network, offering stakers rewards in return. This feature is considered a potentially integral part of Ether ETFs as it could generate yield to investors, increasing the attractiveness of the funds.
The annual yield on staked Ether is estimated at 2.4% on Coinbase, while on Kraken, another US-based exchange, it ranges from 2% to 7%. Since their launch in 2024, Ether ETFs have seen a cumulative net inflow of $2.28 billion. The race for staking on Ether ETFs includes other asset managers, including BlackRock’s 21Shares iShares Ethereum Trust.
Sec delays decision 올 grayscale funds
The company submitted its request in February and is currently waiting for the agency’s approval. Despite the delay on staking filings, the SEC is moving forward with regulatory requests surrounding crypto ETFs.
On April 9, the agency authorized options trading for funds from BlackRock, Bitwise, and Grayscale, broadening the utility of these funds for institutional investors. Options involve the right to buy and sell contracts that give investors the right but not the obligation to buy an asset at a certain price. Efforts to expand the appeal of Ether ETFs reflect their slower adoption compared to Bitcoin ETFs, which were launched in January 2024.
While Ether ETFs amassed a net cumulative inflow of $2.2 billion as of April 11, Bitcoin funds saw flows topping $35.4 billion. Ether’s performance has also been less robust during this bull market compared to other assets like XRP and Solana. Ether’s 52-week high of $4,112 did not surpass its November 2021 peak all-time high of $4,866.
As of April 14, the token is trading below the $2,000 mark.
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