15-4-2025 – The Securities and Exchange Commission (SEC) has opted to defer its verdict on permitting Ethereum staking within Grayscale’s Ethereum Trust ETF and Ethereum Mini Trust ETF. This decision, now slated for review by June 1, with a final determination expected no later than October 2025, underscores the regulator’s prudent stance amid the swirling uncertainties of the cryptocurrency market. The proposal, first tabled by the New York Stock Exchange on February 14, sought to enable investors to stake their Ethereum holdings, potentially reaping rewards estimated by Coinbase at a steady 2.4% annually, while Kraken suggests yields could range between 2% and 7%. Such prospects have tantalised investors, yet the SEC’s hesitation reflects a broader caution in weaving new crypto functionalities into the financial tapestry.
Meanwhile, the SEC has shown agility elsewhere in the crypto sphere. On April 9, it greenlit options trading for a suite of spot Ether ETFs, including those overseen by BlackRock, Bitwise, and Grayscale. This milestone empowers institutional players to harness derivatives, fostering greater market fluidity and opening avenues for sophisticated hedging tactics. Yet, despite these strides, Ethereum’s market performance paints a less vibrant picture. By April 11, Ether ETFs had attracted a cumulative $2.2 billion in net inflows—a respectable sum, but dwarfed by the $35.4 billion flooding into Bitcoin ETFs. Ether’s price, languishing below $2,000 as of April 14, has struggled to reclaim its former heights, casting a shadow over its allure in the ongoing bull market.
