SEC Recognizes Grayscale’s Revised Staking Proposal for Ethereum ETF
In the ongoing battle for approval of a spot ETF for Ethereum (ETH), Grayscale is now incorporating staking income into its proposal. The US Securities and Exchange Commission (SEC) is now reviewing this updated plan.
Grayscale Declares Staking Strategy for Ethereum ETF
The price of Ethereum (ETH) is currently around 1,500 US dollars and, like the rest of the market, is suffering from a negative trend exacerbated by various negative news. But behind the scenes, Grayscale in the US is making serious attempts to finally open up for institutional investors the opportunity to invest in Ethereum without having to buy and store ETH themselves. Grayscale has decided to rely strategically on staking in order to advance its plan for a spot Ethereum ETF.
SEC Refers to New Grayscale Proposal on Ethereum
In a notice, the SEC confirmed that it would now review the new Grayscale proposal. The so-called smart contracts of Ethereum are expected to offer the possibility to generate income through staking up to 6 percent annually. Staking is facilitated in this context by merging smaller amounts of ETH to achieve the minimum amount required for participation in the Ethereum network’s Proof-of-Stake mechanism. This is intended to make the Ethereum ETF attractive, particularly for investors searching for ways to multiply their assets without too much market volatility.
Will Grayscale’s Ethereum ETF Convince?
Grayscale, managed under the roof of Digital Currency Group (DCG), already offers a Bitcoin Trust traded on the stock exchange for BTC under the ticker GBTC since 2013. However, neither for Bitcoin nor Ethereum spot ETFs have been approved by the SEC to this date. The SEC still bases its rejections of Grayscale and other similar applications on concerns about possible fraud and market manipulation. But with a combination of custody solutions and staking, Grayscale is now hoping to finally respond to the SEC’s guidelines and get the green light for a publicly traded Ethereum ETF.
Is Ethereum Staking an Argument for the SEC?
Grayscale’s plan seems to formulate a transparent and reliable infrastructure where staking revenue is automatically generated and distributed. The SEC’s previous objections to Ethereum futures ETFs have been rejected, but Grayscale’s argument that staking would prove safer and less susceptible to manipulation could be groundbreaking. Consequently, it remains open and exciting to see whether the added element of staking in Grayscale’s Ethereum ETF proposal will influence the SEC to make a precedent-setting decision.
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