31-7-2025 – The Securities and Exchange Commission has delayed its decision on adding staking functionality to the Invesco Galaxy Ethereum ETF until September 25, extending the regulatory review period for the proposed enhancement.

The regulator announced the delay in a July 30 filing, citing the need for further review, according to multiple sources. The proposal, submitted by Cboe BZX Exchange on June 9 and later amended on June 23, seeks to introduce staking functionality into the ETF structure.

The proposed staking feature would allow the fund to earn rewards through Ethereum’s proof-of-stake consensus mechanism, potentially making the ETF more attractive to institutional investors. Currently, approved spot Ethereum ETFs can only hold the underlying cryptocurrency without participating in network validation activities that generate additional returns.

This delay follows a pattern of SEC caution around cryptocurrency ETF enhancements. The commission has similarly postponed decisions on staking proposals from other major ETF providers including Grayscale and Bitwise, as regulators work through complex questions around custody, risk management, and the legal classification of staking rewards.