Grayscale Seeks SEC Approval for Ethereum ETF Staking, Highlighting $61M in Lost Rewards

Grayscale Investments is making a persuasive case to the United States Securities and Exchange Commission (SEC) to approve Ethereum-based exchange-traded funds (ETFs).  In a recent discussion with the SEC Crypto Task Force on April 21, 2025, Grayscale revealed how restrictive restrictions have impacted the ETH ETFs, resulting in many missed opportunities that accounted for around $61 million in lost ETH staking since its launch. The global crypto markets, like Europe and Canada, are embracing staking within the crypto ETHs, so Grayscale is urging U.S. regulators to modernize policies, enhance investor returns, and strengthen Ethereum blockchain security. 

Grayscale’s Case: Unlocking Value Through Staking

Grayscale discussed its plan to update filings for the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF (ETH) at the Washington, D.C., conference. The primary contention was that the incapacity of the other international competitors to engage in staking puts ETH staking at a glaring disadvantage. Additionally, Grayscale noted that Ethereum (ETH) is losing out on significant profits despite possessing $8.1 billion in assets. 

Approximately 28.0% of eligible tokens are currently staked, allowing anyone from all over the world to contribute. This is a key element of the Ethereum network, allowing users to generate passive revenue. It incentivizes the network contributors for their efforts in validating the transaction honestly, making the system secure for the users. The chief legal officer of Grayscale emphasized the significance of integrating US legislation with worldwide standards, pointing out that responsive staking may benefit both investors and the larger Ethereum network.

Addressing Risks: Liquidity, Security, and Compliance

One of the SEC’s longstanding concerns around staking is that it involves constraints along with operational risks. Such as unstaking delays, slashing penalties, and tax implications, so to counter these concerns, Grayscale introduced a comprehensive risk management strategy. This multi-layered liquidity strategy features a “liquidity Sleeve” to ensure readily available assets. 

Short-term financing arrangements with custodial and liquidity providers. And lastly, a revolving credit facility to handle redemption demands during staking lock-up periods. Moreover, Grayscale reassured the regulator about its partnership with Coinbase Custody. The company’s stance is that if there are proper safeguards in place, ETH staking can be integrated into ETFs without compromising investor safety or market efficiency. 

Global Precedent and Market Reaction

Grayscale’s investment push comes amid the growing evidence that staking within ETFs is both feasible and beneficial. In markets like Europe and Canada, Ethereum ETPs already offer staking features and are delivering additional returns to shareholders without any disruption of the trading operations. Following this meeting, market sentiment reflects cautious optimism, and industry experts, along with investors, are hopeful that the SEC may revise its stance. 

Ethereum Price & The Future of U.S. Ethereum ETFs 

As of the latest market updates, the Ethereum price is at $1,801.5, showing a bullish momentum and a positive change of +9.2 USD. This upside trajectory reflects a notable improvement in the market, indicating that the ETH price is maintaining momentum amidst ongoing discussion about regulatory changes and potential staking integrations.

ETH/USD chart, published on Tradingview, April 28, 2025

The price movement suggests an increase in market confidence, especially with firms like Grayscale pushing for ETH staking approval. As the Ethereum network continued to dominate the smart contracts with a market cap of $217.44 billion and growing institutional interest. For now, the eyes remain on the SEC as stakeholders wait for a decision that could reshape the future of Ethereum investment in America.