According to The Block
The U.S. Securities and Exchange Commission (SEC) has postponed its decision regarding the staking of cryptocurrency exchange-traded funds (ETFs) as well as the mechanisms for physical subscriptions and redemptions. This move aims to provide the regulatory body with more time to assess these rule changes. Recently, the SEC’s internal Crypto Task Force has been considering how to implement long-term and comprehensive regulations for digital assets.
Reportedly, the deadline for the decision on Grayscale’s Ethereum Trust (ticker: ETHE) and Grayscale’s Ethereum Mini Trust (ETH) staking mechanism application has been extended to June 1. These rule change applications, submitted by NYSE Arca, a fully electronic exchange under the New York Stock Exchange on behalf of Grayscale, seek permission to allow staking of Ethereum (ETH) held by a spot Ethereum ETF. Robert Mitchnick, head of digital assets at BlackRock, has stated that the lack of staking yield is one of the main reasons for the underwhelming market performance of Ethereum ETFs.
Additionally, the deadline for the decision regarding VanEck’s Bitcoin spot ETF and Ethereum spot ETF physical subscription and redemption mechanism application has been postponed to June 3. These rule change applications, submitted by Cboe BZX, an exchange under the Chicago Board Options Exchange, seek to allow investors to create or redeem ETF shares using the underlying assets (such as Bitcoin or Ethereum) instead of cash. The SEC has also postponed its decision on a similar application for the WisdomTree Bitcoin ETF (extended to June 3).