SEC has accepted for review an application from NYSE Arca to permit Ethereum staking for Grayscale’s ETFs.
The proposed amendment in the document grants Grayscale Ethereum Trust ETF and Grayscale Ethereum Mini Trust ETF the right to participate in the Proof-of-Stake validation mechanism and earn staking rewards under the funds’ control “to maximize the fund’s and its shareholders’ profits.”
“[Permission for staking] will benefit investors by allowing the trusts to exercise their rights to additional ETH and help better track income related to coin custody,” the application states.
The authors emphasized that the proposed activity differs from “delegated staking” and the staking-as-a-service model, which the Commission believes “implied an unlawful offering of securities.”
Staking will be conducted exclusively by Grayscale. Pooling ETH with coins from other organizations and delegation is not planned. However, merging with other assets is allowed at the staking provider level, the document specifies.
The assets will remain in the funds’ wallets managed by the custodian — Coinbase Custody Trust Company.
Within 45 days from the acceptance date (February 25), the SEC must decide on the application or extend the review period.
In January, ConsenSys founder Joe Lubin noted that issuers of spot Ethereum-ETFs in the US are anticipating “imminent” approval of staking by the Commission.
Earlier in February, the Chicago Board Options Exchange submitted a proposal to the SEC to permit staking for Ethereum-ETF from 21Shares.