Grayscale's Proposal to Allow Staking of ETH Within Its Spot Ethereum ETF and Ethereum Mini Trust ETF Has Been Delayed to June 1

The United States Securities and Exchange Commission (SEC) has delayed its decision on Grayscale's proposal to allow staking of ETH within its spot Ethereum ETF and Ethereum Mini Trust ETF.

The United States Securities and Exchange Commission (SEC) has delayed its decision on Grayscale’s proposal to allow staking of ETH within its spot Ethereum ETF and Ethereum Mini Trust ETF.

The decision, which was initially expected by June 15, has now been pushed to June 1, leaving markets in limbo.

Grayscale’s proposal, first announced in January 2024, seeks to modify its existing Mini Trust ETF and two closed-end funds to allow them to participate in Ethereum’s proof-of-stake validation system.

This move would democratize ETH staking for traditional investors, who are currently limited to investing in crypto through limited partnership vehicles.

Grayscale’s proposal keeps the same strict custody and compliance rules that the SEC uses to approve other ETFs.

However, the SEC had previously rejected proposals for Bitcoin ETFs due to concerns about market manipulation and liquidity, despite approving other types of crypto ETFs.

Earlier this year, the SEC approved two spot Bitcoin ETFs, setting the stage for the possibility of ETH ETFs being approved as well.

The SEC’s decision on Grayscale’s proposal could have broader implications for the future of crypto ETFs in the U.S.

Meanwhile, two major Ethereum whales seem to have lost some faith in the short-term price outlook.

One address known for making large trades dumped 8,922 ETH (≈$14.82 million) to Kraken, a move that is usually associated with a planned token sale.

Another whale liquidated 8,001 ETH (≈$13.06 million) at $1,632 per coin, suggesting caution at current levels after a decent rally.

Moreover, adding fuel to the uncertainty, Ethereum’s stablecoin supply has shrunk by over $1 billion in the past week, signaling liquidity outflows and lower DeFi activity on the network.

Ethereum Price Analysis – Where Is ETH Heading Now?

The Ethereum 1-month chart reveals a long-term bullish pennant pattern stretching from early 2021 to the present.

This formation, typically signals a continuation of the prevailing uptrend, which in Ethereum’s case, dates back to the 2020–2021 bull run.

Ethereum recently tagged the support line again and bounced, printing a monthly candle close above the middle Bollinger band, and testing the 200-period MA (green) from where it bounced.

A breakout to the upside, if it occurs with strong volume, could imply a measured move of approximately the height of the flagpole – potentially targeting the $4,000–$4,500 range.

However, the MACD is still in bearish territory, showing red histogram bars and a declining signal line while the RSI is at 41.61, below the neutral 50 mark.

While not oversold, it shows limited strength, suggesting ETH needs a strong catalyst to reclaim bullish momentum.

Ethereum Uncertainty Fuels $4.6M Surge into This Bullish New Meme Coin

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BTC Bull is already amassing a strong community with thousands following its journey on X and has raised a whopping $4.68 million in its red-hot presale, gathering serious momentum ahead of its August 10 listing on major exchanges.

Now, BTC Bull is making headlines again with its unique tokenomics that will either see BTC tokens burned or dropped into the token holder’s wallets.

For every $25K move in Bitcoin’s price, BTC Bull will either melt away some of its own tokens to fuel scarcity or airdrop BTC to reward those who have stayed loyal to the bull.

Plus, early buyers can now stake their tokens directly from supported wallets like Best Wallet and earn high APY returns.

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