New Ether ETF notification from Grayscale to SEC

In an update to the SEC regarding the Ethereum spot ETF, Grayscale also sent a letter to the agency stating that a fund without staking would have a much greater disadvantage than other funds without these restrictions or real Ether investments.

New Ether ETF notification from Grayscale to SEC

Grayscale added a staking assessment for its Ethereum fund, ETHE, as an update to the US Securities and Exchange Commission (SEC). The company stated that the SEC’s deprivation of Ether spot ETFs from staking will create a major disadvantage for the funds.

“It will reduce the value of the fund”

In its notice to the SEC for ETHE, Grayscale stated that this would reduce the value of the fund and said:

“The current inability of the Trust to use its Ether in Staking and receive such rewards could place the Shares at a comparative disadvantage relative to an investment in Ether directly or through a vehicle that is not subject to such a prohibition, which could negatively affect the value of the Shares.”

The SEC considers staking returns in Ether to be a sale of securities and opposes the inclusion of this return instrument in Ether spot ETFs, which it was forced to approve under public pressure. For this reason, companies from BlackRock to Fidelity have removed staking from their ETH ETF applications. ARK Invest withdrew its application, stating that this fund would not be very useful without staking.

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