The decision by the SEC regarding the permission for staking in Grayscale's potential Ethereum ETFs has been postponed. The ETF applications for the Grayscale Ethereum Trust and Grayscale Ethereum Mini Trust ETF were submitted by NYSE Arca on February 14, 2025, which also requested a rule change to incorporate staking into their investment strategy.

Originally, the SEC was supposed to make a decision on the proposal by April 17. However, based on the Securities Exchange Act of 1934, the SEC can extend the review period for up to 90 days, which they have now chosen to do. Therefore, the SEC will now determine the fate of this filing by July 2025.

If staking were to be permitted, it would enable the ETFs to earn rewards through engaging in Ethereum's proof-of-stake consensus system, a function that has not yet received approval for any US-based cryptocurrency ETFs. Grayscale has suggested that staking activities should be managed solely by the sponsor without mixing funds, with Coinbase Custody remaining responsible for the protection of the ETH assets.

This delay by the SEC is consistent with the overall cautious approach to regulatory oversight concerning advancements in crypto ETFs, which also applies to similar submissions from various asset managers.