The New York Stock Exchange has submitted a proposal to the U.S. Securities and Exchange Commission to introduce Ethereum staking in Grayscale’s spot Ether exchange-traded funds. This initiative, if approved, would allow Grayscale to participate in staking for their Ethereum Trust and Ethereum Mini Trust ETFs. Grayscale has indicated that any staking rewards from these funds would be considered as income. However, they have clarified that they will not promote or offer any guaranteed returns on staking activities.
This development aims to benefit investors by enabling the funds to earn additional Ether through staking, potentially enhancing the funds’ ability to track Ethereum’s performance. The move seeks to improve the creation and redemption process of these ETFs and provide greater efficiency. This proposal follows a similar move by 21Shares, which recently sought approval for staking in its spot Ether ETF through an application with the SEC via the CBOE BZX Exchange. The SEC previously required issuers to exclude staking rewards from spot Ether ETFs before their approval but there are indications this stance may change under a more crypto-friendly regulatory environment.
