Grayscale ETFs Staking on Hold as SEC Focuses on Options Approval

The U.S. Securities and Exchange Commission (SEC) has delayed a decision on whether to allow Ether staking in two of ETFs. This includes the Grayscale Ethereum Trust ETF and the Grayscale Ethereum Mini Trust ETF. The SEC announced on April 14 that it will now make a decision by June 1. However the ultimate deadline for a complete approval or denial is still in October 2025.

What Is Staking and Why It Matters

Staking is when individuals lock up their cryptocurrency in a wallet to assist in operating and securing a blockchain network. As a return, they get rewarded, similar to interest on a savings account. Most investors find staking an essential component of  ETFs since it can give additional returns. Such an additional incentive can make it popular among both retail and institutional investors. Grayscale first submitted a request in February through the New York Stock Exchange (NYSE). The plan would enable investors to stake their Ether directly via the ETF. If it were approved, this would be one of the first U.S.-based funds to offer an option. The rewards annually changes on the basis of platform. For instance, Coinbase is offering a 2.4% return annually, on the other hand Kraken gives between the range of 2% to 7%.

Strong Interest in Ether ETFs

Even without staking, Ethereum ETFs have already attracted billions of dollars. Sosovalue reports that Ether ETFs have brought in $2.28 billion in total investments since their debut in 2024. This shows strong demand, although still far behind the $35.4 billion poured into Bitcoin ETF during the same period. Other big players like BlackRock’s 21 Shares iShares Ethereum Trust are also in the race. They filed for permission to offer staking services back in February and are still waiting for SEC approval.

SEC Gives Green Light to Options Trading

While the SEC is holding off on staking decisions, it did approve something else important—options trading on Ether ETFs. On April 9, the agency allowed multiple spot Ether, including those from BlackRock, Bitwise, and Grayscale, to offer options contracts.

Options trading allows investors to purchase or sell a fund at a specific price within a specified time. This aspect is particularly valuable for big investors who prefer to hedge against risk or wager on price action.

Ethereum’s Market Struggles

In spite of advancements in the ETF sector, Ether's performance has been more depreciated than other cryptos such as XRP and Solana. On April 14, Ethereum is trading below $2,000. Its highest price in the last 52 weeks was $4,112—still below its all-time high of $4,866 reached in November 2021.

Final Thoughts

The SEC’s delay is not a rejection, but it does show the agency is moving slowly on staking. As options trading is now allowed and there are more applications in the pipeline, the market for Ether ETFs is growing slowly. The big question is whether holding will be the next feature to get the green light—and when. For now, all eyes are on the June 1 decision.