NYSE proposes rule change to allow ETH staking on Grayscale’s spot Ether ETFs

The New York Stock Exchange (NYSE) has filed with the US regulator on behalf of asset manager Grayscale, seeking approval to introduce staking in its spot Ethereum exchange-traded funds (ETFs).

If approved, Grayscale will be permitted to stake Ether (ETH) within the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF (ETH), as per a Feb. 14 filing with the US Securities and Exchange Commission (SEC).

Grayscale will not promote any specific level of return from staking

It said Grayscale would earn staking rewards from any staking activity the funds engage in, which would be considered income for the funds.

The filing said that Grayscale would not promote or guarantee any specific level of returns for investors.

“The Sponsor’s staking activities on behalf of the Trust will not constitute “delegated staking” and will not form part of a “staking as a service” offering,” it said.

“Allowing the Trusts to stake their Ether would benefit investors by permitting the Trusts to exercise their rights to free additional Ether and help the Trusts better track the returns associated with holding Ether.”

Grayscale said that staking would improve its spot Ether ETFs’ creation and redemption process, efficiency, and provide more significant benefits to investors. According to crypto exchange Coinbase, the estimated staking reward rate for Ether is 2.06%.

21Shares recently filed a similar proposal

This comes just days after asset manager 21Shares became the first to file for staking within its spot Ether ETF, with CBOE BZX Exchange applying to the US SEC on its behalf.

Before the SEC approved spot Ether ETFs in July 2024, it asked issuers to remove the ability for funds to earn staking rewards. 21Shares dropped staking plans from its spot Ether ETF proposal in May 2024, two months before the fund gained approval and went live.

Related: Vitalik argues for even higher ETH gas limit

However, that policy could be reversed with a more crypto-friendly SEC under the Donald Trump administration.

According to Jito and Multicoin Capital, “We understand the [SEC] Staff may now be amenable to revisiting staking in ETH and other crypto asset ETPs, including in connection with new applications filed for a SOL ETP.” 

Magazine: Comeback 2025: Is Ethereum poised to catch up with Bitcoin and Solana?