NYSE Files Documents with SEC to Introduce Staking Services in Grayscale Ethereum ETF

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New York Stock Exchange Files Application with SEC to Introduce Staking Services to Grayscale Ethereum ETF
New York Stock Exchange Files Application with SEC to Introduce Staking Services to Grayscale Ethereum ETF
February 15, 2025


Ethereum

The New York Stock Exchange (NYSE) has requested permission from the U.S. Securities and Exchange Commission (SEC) to provide collateral services in the Grayscale Ethereum ETF.
In a filing on Friday, the market operator submitted a 19b-4 petition to the U.S. Securities and Exchange Commission (SEC) requesting the rule changes. The New York Stock Exchange wants to amend the terms of its pre-approved Grayscale Ethereum ETF to include staking services.
Staking services involve locking up an underlying asset — in this case, Ethereum — to become a validator and contribute to the stability and security of the network. In return, the staked tokens generate passive income for participants.
Grayscale ETF targets collateral services
If approved, the rule change would provide additional incentives to holders of the Grayscale Ethereum Trust and the Grayscale Ethereum Mini Trust. It is worth noting that the average staking return on Ethereum ranges between 3% and 4% annualized percentage yield (APY).
The application emphasizes that the proposal does not violate any existing securities laws. The exchange noted that the intended staking model is distinct from delegated staking or staking as a service, which are currently classified as securities by the SEC.
Notably, the securities regulator under Gary Gensler has said that staking activity on the Ethereum network constitutes unregistered securities. Although the agency approved an application for an Ethereum spot ETF last year, it required issuers not to pledge their Ether assets, citing federal securities laws.
James Seyffart, ETF analyst at Bloomberg, suggested that the SEC will make a decision on the proposed rule change in the fourth quarter of this year.

The fourth quarter of 2025 is possible. There are many variables in this matter.
— James Seyffart (@JSeyff) February 14, 2025

Issuers take advantage of changing tides
Meanwhile, NYSE Arca became the latest applicant to submit a collateral option to its Ethereum spot ETF clients. To recap, the Chicago Board Options Exchange (CBOE) BZX Exchange recently filed the same application with the SEC on behalf of Ark Investment’s 21 Shares Core Ethereum ETF.
In addition, the Cryptography Task Force is already evaluating the possibility of its approval. The Crypto Mum division, led by Hester Pierce, recently met with Jito Labs and Multicoin Capital to discuss several regulatory rule changes, including how to best incorporate staking into ETFs.
The investigation is part of other actions the SEC is taking to ensure a more friendly environment for cryptocurrencies. To provide context, the agency recently rescinded its SAB 121 rule and suspended its legal battle with Binance for 60 days.

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