Grayscale Investments is urging the SEC for approval of Ethereum ETFs, citing $61 million in lost staking rewards due to strict regulations. At a recent meeting, they highlighted the benefits of ETH staking for investors and the Ethereum network. Grayscale proposed a multi-layered liquidity strategy to mitigate risks associated with staking. As Ethereum price shows positive movements, market experts await the SEC’s response which could alter the landscape of U.S. crypto investments.
Grayscale Investments is notable for pushing forward a proposal to secure the approval of the U.S. Securities and Exchange Commission (SEC) for Ethereum-based exchange-traded funds (ETFs). Recently, during a session with the SEC’s Crypto Task Force on April 21, 2025, they disclosed that restrictive regulations have severely hindered the ETH ETFs. This has resulted in missing out on approximately $61 million in potential staking rewards that have not been capitalised on since their inception.
Focusing on their strategy, Grayscale aims to revise its filings for the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF (ETH) during a conference in Washington D.C. The argument being made is that other international counterparts can participate in staking, putting ETH at a distinct disadvantage. Grayscale pointed out that, despite managing $8.1 billion in assets, Ethereum is presently forgoing significant earning opportunities.
Currently, close to 28% of eligible Ethereum tokens are staked, allowing users worldwide to contribute. This staking aspect is crucial to the Ethereum network as it helps generate passive income for contributors who validate transactions effectively, ensuring security for users on the platform. The chief legal officer of Grayscale stressed the need for the U.S. to align its legislation with global norms, arguing that responsive staking could benefit both investors and the wider Ethereum ecosystem.
Addressing risks surrounding staking, the SEC has voiced long-held concerns about operational risks such as delays in unstaking, penalties for slashing, and tax implications. In response, Grayscale proposed a robust risk management framework that includes a multi-layered liquidity strategy. This strategy features a “liquidity Sleeve” to maintain accessible assets and short-term financing arrangements with liquidity providers, alongside a credit facility to address redemption demands during staking lock-ups.
Grayscale’s bid is taking place within a landscape showing positive trends in staking ETFs worldwide. In regions like Europe and Canada, ETFs offering staking features have already begun generating extra returns for shareholders without interrupting trading activities. Following Grayscale’s meeting with the SEC, market sentiment appears cautiously optimistic. Industry analysts and investors are waiting to see if the SEC might adjust its current position on staking.
The latest updates show Ethereum’s price sitting at $1,801.5, with a bullish shift, appreciating by +9.2 USD. This price trend reflects a significant uplift within the market, showing that ETH is gaining traction even amid ongoing regulatory discussions and potential staking adoption. Market confidence appears to be bolstered by Grayscale’s efforts for ETH staking approvals, particularly as Ethereum’s market cap surges to $217.44 billion with increasing institutional interest. All eyes are set on the SEC as interest mounts regarding a potential decision that could significantly reshape U.S. investments in Ethereum.
