Grayscale Investments is looking to add staking to its proposed branch. Ethereum ETH
-9.64%
In its “Consent Request Statement,” Grayscale proposed four items to investors, including creation and redemption processes associated with cash and the ability to stake Ethereum through trust.
“We believe that the ability for backers to have the Trust stake their Ethereum holdings in return for consideration will allow the Trust to preserve the value of the Trust’s assets by mitigating inflationary pressures caused by Ethereum’s Proof-of-Stake protocol. .For the ultimate benefit of ETHE shareholders, we will also position the Trust to maintain parity with similarly situated investment products that offer Ethereum staking,” the company said in its preliminary proxy statement.
This comes as other companies competing for spot ether ETFs are also adding staking components to their offerings. Fidelity, a major financial company Modified The spot Ethereum ETF application includes a provision for staking the cryptocurrency on Monday.
Grayscale filed Form 19b-4 with NYSE Arca in October. switch Grayscale Ethereum is a trust for spot ether ETF. Grayscale also previously filed to convert the Grayscale Bitcoin Trust into an in-kind Bitcoin ETF, which it successfully converted after a court ruling. Victory And it will receive final approval from the SEC in January.
Spot Ethereum ETF Could Be Launched
Although the SEC approved a spot Bitcoin ETF in January, approval for an Ethereum-based product appears unlikely.
Bloomberg ETF analyst James Seyffart said he expects regulators to reject a spot ether ETF by May 23.
“My cautious and optimistic attitude toward the ETH ETF has changed in recent months,” Seyffart said. Posted X on Tuesday. “We now believe this round will ultimately be rejected on May 23rd. The SEC has not worked with the issuer on Ethereum details. Quite the opposite of the #Bitcoin ETF this fall.”
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
About the author
Sarah is a reporter for The Block covering policy, regulation and legal events. Sarah was previously a reporter writing about securities regulation at CQ Legal, where she first began her reporting on cryptocurrencies. She Sarah has also written for The Bond Buyer and American Banker, among other financial publications. She graduated from the University of Missouri with a degree in Print and Digital Journalism. Sarah lives in Washington, DC and she is an avid coffee lover. You can follow her on Twitter @ForTheWynn.