Grayscale has taken an important step towards expanding its Ethereum-based exchange-traded funds ler( )ETF, holding a formal meeting with the U.S. Securities and Exchange Commission's (SEC) Cryptocurrency Task Force.
Grayscale Seeks Approval from SEC to Activate Staking for Ethereum ETFs
During the meeting, Grayscale applied to amend the 19b-4 Form applications for the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF (ETH).
The proposed changes will allow the two funds to participate in staking activities, and if approved, it will be a first for Ethereum ETFs traded in the US.
Staking allows Ethereum (ETH) holders to earn rewards by locking their tokens to support blockchain operations like transaction validation and network security. The activation of Staking in ETFs can provide investors with additional returns beyond simple price appreciation.
Grayscale's move comes as institutional investors' interest in not only holding digital assets but also actively participating in blockchain ecosystems increases.
However, activities related to staking within public funds continue to be a sensitive issue for U.S. regulators who have previously examined staking programs offered by centralized crypto platforms.
The approval of Grayscale's changes will signify a significant shift in the structuring of crypto investment vehicles in the US by blending traditional financial products with decentralized finance (DeFi) mechanisms.
SEC has not yet made a public comment on Grayscale's proposal.
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Is Ethereum ETF Stake Coming? Investment Giant Grayscale Has Filed with the SEC! Here Are the Details
Grayscale has taken an important step towards expanding its Ethereum-based exchange-traded funds ler( )ETF, holding a formal meeting with the U.S. Securities and Exchange Commission's (SEC) Cryptocurrency Task Force.
Grayscale Seeks Approval from SEC to Activate Staking for Ethereum ETFs
During the meeting, Grayscale applied to amend the 19b-4 Form applications for the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF (ETH).
The proposed changes will allow the two funds to participate in staking activities, and if approved, it will be a first for Ethereum ETFs traded in the US.
Staking allows Ethereum (ETH) holders to earn rewards by locking their tokens to support blockchain operations like transaction validation and network security. The activation of Staking in ETFs can provide investors with additional returns beyond simple price appreciation.
Grayscale's move comes as institutional investors' interest in not only holding digital assets but also actively participating in blockchain ecosystems increases.
However, activities related to staking within public funds continue to be a sensitive issue for U.S. regulators who have previously examined staking programs offered by centralized crypto platforms.
The approval of Grayscale's changes will signify a significant shift in the structuring of crypto investment vehicles in the US by blending traditional financial products with decentralized finance (DeFi) mechanisms.
SEC has not yet made a public comment on Grayscale's proposal.