Grayscale Follows 21Shares in Filing for Ethereum Staking ETF with the SEC

Proposal to Allow Ethereum ETF Staking – Source: NYSE

This is a significant development, as it enables ETFs to generate returns from staking ETH instead of merely holding the asset.

21Shares Leads the Way in Ethereum Staking ETFs

Grayscale’s proposal comes just days after 21Shares became the first company to file for staking integration within its spot Ethereum ETF. The CBOE BZX Exchange submitted the application to the SEC on behalf of 21Shares for approval.

Previously, in July 2024, when the SEC approved spot Ethereum ETFs, issuers were required to remove staking features. In May 2024, 21Shares had to withdraw its staking plans before receiving approval. However, they did not give up. Under the Donald Trump administration, the SEC’s stance on crypto regulations may be shifting.

Grayscale Submits Ethereum Staking ETF Proposal to the SEC

On February 14, 2025, the New York Stock Exchange (NYSE) filed an application with the U.S. Securities and Exchange Commission (SEC) on behalf of Grayscale, proposing to allow staking within the company’s spot Ethereum ETFs. If approved, Grayscale would be able to stake Ethereum in two funds: the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF (ETH).

According to investment firms like Jito and Multicoin Capital, the SEC may now be open to reconsidering staking within crypto ETFs, including potential Solana ETFs in the future.

SEC's Changing Stance on Crypto ETFs

A new leadership team at the SEC, coupled with a series of positive developments for crypto—such as the approval of Solana and Litecoin ETFs and the review of DOGE and XRP ETF proposals by Grayscale—has strengthened the belief that the SEC will continue easing regulations and approving new crypto ETF proposals.

Conclusion

If Grayscale and 21Shares receive SEC approval to integrate staking into their Ethereum ETFs, it would mark a major milestone for the spot crypto ETF market. Not only would it optimize returns through staking rewards, but it would also make Ethereum ETFs more attractive compared to Bitcoin ETFs, as investors could both hold assets and earn staking rewards.

If approved, this development wouldn’t just benefit Ethereum but could also pave the way for other Proof-of-Stake assets like Solana to adopt a similar staking mechanism in ETFs.