SEC Extends Review Period for Grayscale Ethereum Staking Proposal

Highlights:

• The SEC has delayed the decision on the Ethereum staking proposal and has set a new deadline.
• The price of ETH has dropped in the past month as the crypto market shows volatility.
• Investors are showing strong interest in staking as Ether ETFs record over two billion dollars in inflows.

The United States Securities and Exchange Commission has delayed its decision on whether to allow Grayscale’s Ethereum ETFs to participate in staking. The proposal was submitted by NYSE Arca on February 14 and covers the Grayscale Ethereum Trust ETF and the Grayscale Ethereum Mini Trust ETF. The decision, which was expected earlier, has now been pushed to June 1, while the final deadline remains at the end of October.

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BREAKING: The SEC delays staking for the Grayscale spot Ethereum ETF.

I think their buying still isn't completed… hahah! 😅#ETHETF $ETH #Ethereum #SEC pic.twitter.com/epmGXYYAF0

— Crypto Patel (@CryptoPatel) April 14, 2025

The proposal seeks permission for the funds to engage in Ethereum’s proof-of-stake system without changing their existing custody protections. This system allows holders to lock their Ether to help validate transactions on the blockchain. In return, they receive rewards in the form of Ether tokens. The SEC acknowledged the application two weeks after submission, and it has now chosen to extend the evaluation period.

The proof-of-stake mechanism of ETH plays an important role in maintaining the network. It allows users to contribute their assets in return for a share of transaction fees or new tokens. The inclusion of staking in ETFs could open the door to more participation by long-term investors.

Postponement Comes as Market Slips and Crypto Rules Shift

The decision to delay comes at a time when the broader market is experiencing some volatility. The total market value of cryptocurrencies has fallen by around 3% in the past month amid the escalating trade wars.

At the same time, the price of ETH is down by 15% in the past month and now trades at $1,639. The coin is up 0.83% in the past day, and the trading volume stands at $197.89 billion. Ethereum’s price continues to trade below the $2,000 mark, and it has yet to recover its all-time high of $4,866.

The SEC recently approved options trading for several spot Ethereum ETFs. The approval allows investors to buy and sell contracts linked to the price of the ETFs. With this step, ETF products have expanded their features to suit institutional and advanced investors.

There has also been a noticeable shift in the way the SEC is handling virtual assets. Under the leadership of Paul Atkins, who was recently appointed as chairman, the commission is likely to drop more cases. These developments signal a possible change in the approach towards the digital asset industry.

Ethereum Staking Demand Holds Strong Among ETF Managers

The ongoing interest of fund managers in Ether staking remains solid despite the postponement of its implementation. Ether ETFs introduced last year have accumulated $2.28 billion in total inflows, according to Sosovalue data.

Staking can offer yields that range between 2% and 7%, depending on the platform. Coinbase currently offers an estimated annual return of 2.4% on staked Ether. Kraken offers a higher range that can go up to 7%.

The approval process for BlackRock to provide staking services through its 21Shares iShares Ethereum Trust is currently pending. Additional asset managers are adopting the same approach to wait until the Commission establishes its final ruling. The flow of capital into Bitcoin exchange-traded funds remains greater compared to Ether funds while their market presence expands.

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