🌋 Grayscale Adds Staking to Its Spot Ethereum ETF
postedΒ 20 Mar 2024
Following Fidelity's lead, Grayscale Investments has introduced the capability to utilize the ETH in its trust for staking, as part of its application to register a spot Ethereum ETF.
The strategy outlined suggests that earnings from staking could offset inflationary pressures, thereby helping to maintain the value of the trust's assets. Also, this move is aimed at competing with similar ETFs that incorporate staking.
Furthermore, the application revisions include provisions for the creation and redemption of shares using cash, mirroring the mechanism in place for existing spot Bitcoin ETFs. This was identified as a critical condition by the SEC for their endorsement.
Recall that Bloomberg analysts, previously confident in the approval of spot Bitcoin ETFs, are now harboring doubts about the prospect of spot Ethereum ETFs receiving the green light in May. This uncertainty stems from the SEC's reluctance to engage with issuers for the necessary adjustments.
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