The U.S. Securities and Exchange Commission has extended the deadline to decide on a proposed rule change that would allow the Grayscale Ethereum Trust ETF and the Grayscale Ethereum Mini Trust ETF to stake ether held in their portfolios. The extension was announced on Monday, moving the decision date to June 1, 2025.
The proposal, initially filed by NYSE Arca, Inc. on February 14, 2025, seeks to amend the listing rules for the two ETFs to permit ether staking — a process by which cryptocurrency holders can participate in transaction validation on the Ethereum network in exchange for potential rewards. The SEC originally had 45 days from the March 3 publication of the proposal to make a decision but has opted to take additional time to evaluate the implications.
Public Comments Remain Pending on Grayscale’s Ether Staking Proposal
The SEC stated that the extension is intended to allow sufficient time for thorough consideration of the proposed changes and the issues they raise. As of the filing, the Commission noted it had received no public comments in response to the proposal.
The lack of public engagement contrasts with past cryptocurrency-related filings, which often generate substantial commentary from industry stakeholders and the general public. It is unclear whether the absence of commentary will impact the SEC’s final decision.
The proposed staking amendment is part of a broader trend in which ETF sponsors seek to align their products more closely with the evolving infrastructure of blockchain-based assets. If approved, the change would make the Grayscale Ethereum funds among the first U.S.-listed crypto ETFs to incorporate staking into their investment strategy.
Next Steps for the SEC and NYSE Arca
Under Section 19(b)(2) of the Securities Exchange Act of 1934, the SEC may designate a review period of up to 90 days when it deems more time is necessary. The Commission’s move to extend its decision period to June 1 falls within that allowable range.
Until then, the Commission may approve or disapprove the proposal, or it could initiate proceedings to determine whether to disapprove it. The outcome could set a regulatory precedent for similar proposals from other digital asset funds.
The Grayscale Ethereum Trust ETF and Grayscale Ethereum Mini Trust ETF offer investors exposure to ether without direct ownership. The potential addition of staking would introduce a yield-generating mechanism, further blurring the line between passive holding and active blockchain participation. The SEC has not signalled a position on the proposal, and the final decision is now expected by early June.
