The SEC is expected to issue its ruling in June 2025 on Grayscale’s proposal to allow **staking within Ethereum spot ETFs**. A positive outcome would chart a new path for yield-generating, regulated crypto products—potentially altering institutional strategies across digital assets.
1. What Grayscale Is Asking For
Grayscale has requested that NYSE Arca’s Ethereum Trust and Ethereum Mini Trust be permitted to stake their ETH holdings via qualified custodians—enabling investors to earn **on-chain staking rewards** within an ETF wrapper (source [1]). This proposal includes in-kind redemptions and staking yields, a first for U.S. crypto ETFs.
2. SEC Timeline & Regulatory Framework
According to the NYSE Arca filing, the SEC set **June 1, 2025** as the deadline for its decision—or to initiate proceedings (source [2]). The proposal has been under review since February, followed by a statutory extension and formal proceeding in late May, signaling thorough scrutiny of staking mechanics and investor protection.
3. Why Approval Would Matter
Blockworks reports that industry analysts expect staking-enabled ETFs for Ethereum and Solana to proceed this year, marking a pivotal shift toward **regulated yield-bearing crypto products** (source [3]). If approved, staking ETFs could democratize access to passive income strategies—historically available only through private or DeFi protocols.
4. Risks, Yields & Yield Structures
Experts caution that staking ETFs must manage **liquidity for unbonding periods**, slashing risk, and fee transparency. While gross ETH yields may reach 2–3%, **net yields within ETFs** could vary based on redemption structure (NAV accrual vs dividend distribution)—requiring both operational efficiency and clear investor disclosures.
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