The U.S. Securities and Exchange Commission (SEC) has officially delayed decisions on two long-awaited amendments regarding crypto exchange-traded funds (ETFs).
The proposals — the first being a Grayscale Ethereum staking plan for the cryptocurrency’s spot ETF and the second being an in-kind redemption plan for spot Bitcoin and Ether ETFs from VanEck—are now set to be reviewed in early June 2025.
The extension has implications for when clearer regulatory guidance on the potential inclusion of staking and digital asset redemptions into essentially mainstream investment structures could arrive. These are seen as crucial decisions for increasing institutional participation in the crypto markets as well as improving the efficiency of the ETF.
Grayscale Ethereum Staking Proposal Under Scrutiny
According to Cointelegraph, the SEC filed a notice on April 14, 2025, indicating it will postpone its response to the New York Stock Exchange’s petition regarding Grayscale’s Ethereum-based ETFs. A new decision deadline was established of June 1, 2025.
The proposal, which was initially submitted on Feb. 14, would allow the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF (ETH) to stake portions of their Ethereum holdings.
The amendment was published on March 3 in the Federal Register, which began a 45-day review period that will expire on April 17. The SEC then issued an order extending the deadline pursuant to Section 19(b)(2) of the Securities Exchange Act of 1934, as the SEC needed more time to analyze the proposed changes and related risks.
If eventually approved, the ability to integrate staking with ETFs would allow investors to create an added yield on any held assets, potentially reshaping ETF returns within the crypto ecosystem.
‘In-Kind’ Redemptions of VanEck Are Also Delayed
Apart from Grayscale, the SEC also delayed an amendment that had been proposed by asset management firm VanEck for the in-kind creations and redemptions for its Bitcoin Trust (HODL) and Ethereum Trust (ETHV). The proposal would allow ETF shares to be created or redeemed based on the underlying crypto assets instead of cash.
The Federal Register published this amendment on March 5, and it was submitted on February 19. The SEC pushed back its deadline to decide until June 3, 2025, from the first ruling by April 19.
Another benefit of in-kind redemptions is the elimination of friction and cost for operating an ETF, enhancing liquidity and potentially attracting even more institutional investors and avoiding taxes.
ETH Remains Near 0 Below $1,880 Resistance.
Ethereum (ETH) current price on April 15, 2025, is: $1,644.15 (+1.35% in the last 24h) According to Binance data, 24-hour trading volume is $15.42 billion, while the market capitalization is about $197.18 billion.
Ethereum’s recent strength comes despite broader market uncertainty as investors await critical SEC decisions. The staking proposal is perceived as a long-term value catalyst if eventually approved, despite the delays.
Ethereum 2025 Price Forecast Table
| Month | Forecast Range ($) |
| May 2025 | 1,800–2,100 |
| June 2025 | 2,100–2,400 |
| July 2025 | 2,400–2,700 |
| August 2025 | 2,700–3,000 |
| September 2025 | 3,000–3,200 |
| December 2025 | 3,400–3,600 |
These forecasts take into consideration expected Ethereum demand increases due to recent favorable regulatory changes and an increasing role of staking in decentralized finance.
Institutional and Retail Investor’s Implications
The SEC’s delay introduces immediate uncertainty but signals a strengthening of regulatory touchpoints with digital assets. Such approval of these proposals could suggest a pivot for the Commission to more functional and yield-generating ETF structures.
According to market observers, crypto ETFs would become more efficient with staking and in-kind redemptions, potentially lowering costs for investors while enhancing the fund’s performance in the long run.
While public commentary on both filings has yet to emerge, internal assessments during the next few weeks will help inform the next regulatory steps.
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FAQs:
1. Why has the SEC delayed the decision on the proposed amendments for crypto ETF?
The SEC said the extra time was needed to consider legal, structural, and market impacts of staking and in-kind redemptions for crypto ETFs.
2. How can staking approval influence Ethereum ETFs?
If approved, Ethereum ETFs could offer a passive yield through staking, boosting fund yields and drawing institutional interest in investment products collateralized by Ether.
3. What would in-kind redemptions mean for VanEck’s Bitcoin and Ethereum ETFs?
Such in-kind redemptions minimize operational expenditures since the executing party never has to convert the assets, capitalize on tax-free redemptions from capital gains, and direct crypto-asset exchange that enhances computational power to support institutional and retail investors.
4. SEC delays may temporarily be a setback for ETH & BTC.
Yes, delays, after all, do lead to increased market uncertainty and can result in short term volatility in ETH and BTC prices with the help of speculative trading and regulatory risk concerns.
Glossary of Key Terms
1. Exchange-traded fund (ETF)
An exchange-traded fund is a type of investment fund that is traded on stock exchanges and holds assets like stocks or crypto. Crypto ETFs track the price of digital stashes like Bitcoin or Ethereum.
2. Staking
The act of staking currency in return for rewards in order to help the network carry out operations such as block validation. It is a common phenomenon in proof-of-stake blockchains such as Ethereum.
3. In-Kind Redemption
A structure in which ETF shares are converted directly to underlying (BTC, ETH for example) rather than cash, reducing tax exposure and increasing redemption efficiency
4. U.S. Securities and Exchange Commission (SEC)
A federal agency that oversees U.S. securities markets. In the world of crypto, it supervises ETF proposals, token classifications, and adherence to federal securities laws.”
5. Ethereum Trust ETF
An exchange-traded fund similar to that provides exposure to Ethereum’s price performance via shares, usually with active management (think asset managers like Grayscale).
6. Section 19(b)(2) of the Exchange Act
A legal provision that allows the SEC to extend its review of proposed rule changes—often used in the context of complex or controversial ETF proposals.
7. Cboe BZX Exchange
A U.S.-based securities exchange responsible for listing and maintaining ETF proposals. It submitted VanEck’s application for in-kind redemptions in its crypto ETF products.
8. Digital Asset Custody
