Grayscale Investments Met with the US Securities and Exchange Commission's (SEC) Crypto Task Force

The representatives from Grayscale Investments met with the US Securities and Exchange Commission's (SEC) Crypto Task Force on April 21 to advocate for allowing staking within Ethereum exchange-traded products (ETPs).

The U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force met with representatives from Grayscale Investments to discuss allowing exchange-traded products to engage in crypto staking.

According to a report by Wu Blockchain, the meeting took place on April 21, and the task force was applying for an amendment to its 19b-4 Form filings for the Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH).

The firm is aiming to enable the relevant funds to participate in staking activities.

"Currently, spot ETH ETPs do not represent the underlying ETH completely, because they are not currently permitted to engage in staking. This difference is especially evident in terms of total returns generated since launch.

Since the launch of the first U.S. ETH ETP in November 2021, U.S. ETPs have missed out on approximately $61 million in potential staking rewards and are at a competitive disadvantage to international ETH ETPs, which already offer such products and collect staking rewards.

Staking would not only enhance returns for shareholders but also contribute to the security and efficiency of the Ethereum network. Moreover, engaging in staking is a natural progression for ETH ETPs to better track the underlying index and maintain competitiveness in the ETP market," the statement reads.

This comes as several other institutions are also planning to launch spot Bitcoin ETFs later this year.

The post Grayscale applies for U.S. ETH ETPs to engage in staking in meeting with SEC task forceppears first on AMB Crypto News.

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