The US Securities and Exchange Commission extended its examination periods for the proposed amendments about cryptocurrency exchange-traded funds so they will now review staking and in-kind redemption models starting in June 2025. On April 14 the SEC published notices which updated the approval timelines for both proposed rules because additional assessment was required.
Grayscale’s ETH Staking Proposal
The Ethereum staking application by Grayscale has been postponed. The is due to a regulatory decision about the Grayscale (ETHE) accepting custody-based Ethereum staking. The New York Stock Exchange filed the first amendment on February 14 and the Federal Register published it on March 3. The initial 45-day period for the decision which started on April 17 now spans until June 1 2025.
VanEck’s In-Kind Redemption Model
The delayed approval process from Cboe BZX Exchange affects their plan to let VanEck’s Bitcoin Trust and ETH Trust (ETHV) maintain shares through direct crypto transfers. The proposed modification to share creation and redemption procedures by digital assets instead of cash appeared on February 19. The Commission extended the decision deadline from April 19 to June 3 during 2025.
Ongoing Regulatory Consideration
All proposals presented to the Commission remain under the review stage since the Commission has not received any public feedback. These June deadlines extend the period needed for internal evaluations. And potential legal proceedings which test securities law compliance for the submitted proposals.
