Grayscale is actively urging the U.S. Securities and Exchange Commission (SEC) to approve Ethereum exchange-traded products (ETPs) to participate in staking. The firm focused specifically on the benefits that staking created for both investors and the Ethereum ecosystem. Grayscale pointed out that U.S. Ethereum ETPs only manage a combined $8.1 billion in assets.

U.S. Ethereum ETPs have lost out on about $61 million in staking rewards from launch to February 2025. These rewards not only went to the hands of non-U.S. ETPs, but other stakers, putting U.S. investors at a disadvantage. As a result, on April 21st, the firm participated extensively in the SEC’s Crypto Task Force in Washington, D.C. They advocated for critical regulatory changes.

Grayscale is suggesting changes that would allow for staking operations, which would bring U.S. Ethereum ETPs in line with international peers. The firm pointed to Ethereum ETPs in Europe and Canada, which engaged in staking with no adverse impact to market efficiency. For its part, Grayscale stressed its expertise in overseeing ETPs that have endured comparable adversity.

The firm has further underscored its unique position to rely on traditional finance analogues to responsibly roll out staking. To reduce exposure to liquidity risk during unstaking windows, Grayscale has since implemented a liquidity management strategy. This liquidity approach is anchored by a new “Liquidity Sleeve,” various short-term financing alternatives and a revolving credit facility.

After the announcement, Grayscale’s chief legal officer, Craig Salm, thanked both the D.C. He underscored the positive impact of staking integration in non-U.S. markets. Countries such as Europe and Canada already show its success. Grayscale's proposed staking participation could unlock millions of dollars in rewards and reinforce Ethereum's network security.

The company announced that its proposed staking participation was able to free up hundreds of millions of dollars worth of rewards. It was make Ethereum’s network security far more robust. Grayscale pointed out that the value that staking can bring investors and the Ethereum ecosystem as a whole is immense.