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NYSE Files With the SEC to Introduce Staking to the Grayscale Ethereum ETFs
NYSE Files With the SEC to Introduce Staking to the Grayscale Ethereum ETFs
February 15, 2025
Ethereum
The New York Stock Exchange (NYSE) has requested that the US SEC allow staking services on the Grayscale Ethereum ETFs.
In a Friday filing, the market operator submitted a 19b-4 application to the US Securities and Exchange Commission (SEC) requesting a rule change. The NYSE seeks to amend the provisions of the pre-approved Grayscale Ethereum ETFs to include staking services.
Staking services involve locking up an underlying asset—in this case, Ethereum—to become a validator and contribute to the stability and security of a network. In return, the staked tokens yield passive rewards to participants.
Grayscale ETFs Eyes Staking Services
If approved, the rule change would provide additional rewards for holders of the Grayscale Ethereum Trust and the Grayscale Ethereum Mini Trust. Notably, the average staking reward for Ethereum ranges between 3% and 4% APY.
The filing insists that the proposal does not contravene any existing securities law. The exchange noted that the intended staking model differs from delegated staking or staking as a service, which the US SEC currently classifies as a security.
Notably, the securities regulator, under Gary Gensler, suggested that staking activities on the Ethereum network constitute unregistered securities. Although the agency approved applications for an Ethereum spot ETF last year, it mandated issuers not to stake their Ether stash, citing federal securities law.
Bloomberg ETF analyst James Seyffart suggested that the US SEC will decide on the proposed rule change by the fourth quarter of the year.
4Q 2025 potentially. Lotta moving parts with this one.
— James Seyffart (@JSeyff) February 14, 2025
Issuers Leveraging the Changing Tides
Meanwhile, the NYSE Arca becomes the latest to file to include staking options for its Ethereum spot ETF clients. Recall that the Chicago Board Options Exchange (CBOE) BZX Exchange recently applied to the SEC for the same course on behalf of Ark Investment’s 21 Shares Core Ethereum ETF.
Moreover, the crypto task force is already weighing the possibilities of its approval. The Crypto Mum Hester Pierce-led division recently met with Jito Labs and Multicoin Capital to discuss several regulatory rule changes, including how best to include staking in ETFs.
The inquiry follows other actions from the U.S. SEC to ensure a friendlier environment for cryptocurrencies. For context, the agency recently scrapped the SAB 121 rule and paused its legal battle with Binance for 60 days.
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