SEC delays decisions on staking and in-kind redemptions for crypto ETFs to early June
The US Securities and Exchange Commission (SEC) has delayed decisions on two proposed amendments related to crypto exchange-traded funds (ETFs), extending review periods for both staking and in-kind redemption models into June 2025.
The new timelines apply to Grayscale’s Ethereum (ETH) staking filing and VanEck filings for in-kind redemptions on Bitcoin (BTC) and Ether ETFs.
Decision delayed
On April 14, the SEC issued a notice designating June 1, 2025, as the new deadline to determine whether to approve, disapprove, or initiate proceedings on the New York Stock Exchange (NYSE) request over Grayscale’s ETF.
The proposal would allow the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF (ETH) to stake a portion of the ETH held in custody.
The exchange initially filed the amendment on Feb. 14, and it was published in the Federal Register on March 3. It set an initial 45-day decision deadline for April 17.
The Commission extended the review period under Section 19(b)(2) of the Securities Exchange Act of 1934, citing the need for more time to evaluate the rule change and associated issues.
In-kind redemptions
On the same day, the SEC also postponed its decision on a separate proposal from Cboe BZX Exchange regarding in-kind creations and redemptions for the VanEck Bitcoin Trust (HODL) and VanEck Ethereum Trust (ETHV).
The amendment, filed on Feb. 19 and published on March 5, would revise the terms under which shares of the trusts can be created and redeemed using digital assets rather than cash.
The initial 45-day review period was set to expire on April 19, but the Commission has extended it to June 3 to allow for further consideration.
According to federal filings, the Commission has not yet received public comments on either proposal.
The June deadlines now provide an extended window for internal assessment or the potential initiation of proceedings to further evaluate the proposals’ compliance with applicable securities laws.