Grayscale announced that market delays from the SEC have prevented investors from collecting $61 million in rewards through Ethereum ETF staking. The long-term regulatory dispute between the SEC and grayscale continues to affect Ethereum’s price stability, while creating market-related uncertainty. Grayscale is currently trying to secure approval, as achieved by international market regulators.
Grayscale was lost as the SEC bets $61 million to seek approval for the Ethereum ETF.
On April 21, Grayscale representatives met with the SEC’s Crypto Task Force to defend the staking capabilities of the Ethereum ETF. The company is currently seeking modifications to form the 19B-4 filings for both the Grayscale Ethereum Trust ETF and the Ethereum Mini Trust ETF.
“We are pleased to announce that we are committed to providing a range of services and services to our customers,” said Craig Salm, Chief Legal Officer at Grayscale Investments.
“We are grateful for the opportunity to engage with the Securities and Exchange Commission’s Cryptographic Task Force.”
The economic impact of these restrictions is clearly outlined in the Grayscale memorandum.
“ETH ETP missed the staking process until February 2025, and forgot about its approximately $61 million. Instead, such rewards have been sent to non-US ETPs and other non-ETP stakers.”
Network Security Benefits
Ethereum ETF staking will benefit both the network and the investors. Grayscale also highlights the benefits of this duality in its presentation to the SEC.
“Through staking, US ETPs will take part in validating transactions on the Ethereum network, contributing to the security and efficiency of the Ethereum blockchain, earning ETH rewards in return.”
International precedent
At the time of writing, Sec Ethereum’s decision is behind the global market. There, Ethereum ETF staking is already permitted in various jurisdictions. Grayscale focused on this disparity in this document.
“Currently, Spot ETH ETPs do not fully represent the underlying ETH because they are not currently permitted to engage in staking.”
Grayscale also confirmed its operational preparations in this statement.
“The experience in managing ETPs, leveraging traditional financial analogues and facing similar liquidity challenges, coupled with connectivity and partnerships across the greyscale digital asset ecosystem, allows us to bet ETH effectively and responsibly with ETP.”
Future outlook
The situation at the grayscale Ethereum ETF shows how regulatory power contradicts new cryptographic developments. The potential consequences of the SEC’s decision regarding this proposal determine the price fluctuations for Ethereum. Hasil determines key factors affecting traditional investors’ access to the possibilities of Ethereum ETF staking and sets a new direction for cryptocurrency investment vehicles in the US market.
