<ul><li>The SEC acknowledged a filing from NYSE Arca for Grayscale’s Ethereum ETFs to earn staking rewards.</li><li>The proposal involves Grayscale staking a portion of the ETFs’ Ethereum holdings through trusted providers.</li><li>Staked Ethereum would remain in custodial control, without leaving the wallet holdings.</li><li>SEC to make a decision by May 26, 2025, with a review period possibly extending up to 90 days.</li><li>The staking process would be managed exclusively by Grayscale without pooling ETH with other validators.</li><li>Ethereum staking involves users locking up their ETH as co-validators, earning rewards in ETH.</li><li>Grayscale aims to better track returns associated with holding Ethereum using staking if approved.</li><li>The SEC has shown interest in staking amid concerns about its classification under U.S. securities laws.</li><li>Grayscale is expanding its crypto ETF portfolio with filings for XRP, Cardano, and Polkadot.</li><li>Regulatory changes and market implications surrounding Grayscale’s ETF proposals are being closely monitored.</li></ul>

SEC Reviews Grayscale Ethereum ETF Staking Proposal with May Decision Expected

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