SEC Delays Decisions on In-Kind Redemption and Staking of Ether ETFs
The regulator has postponed the deadlines for two key decisions until June.
Author: Helen Brown | Edited by: Nikhilesh De Updated: April 14, 2025, 8:00 PM Published: April 14, 2025, 7:57 PM
Important points:
- The Securities and Exchange Commission (SEC) has delayed in-kind redemption decisions for crypto ETFs Bitwise and WisdomTree.
- Grayscale's plan for staking in their Ethereum trusts has also been delayed.
- Other regions have already allowed such features, but the SEC is keeping its own pace.
The Securities and Exchange Commission (SEC) is not yet ready to rule on two important features that issuers of cryptocurrency exchange-traded funds (ETFs) hope to add to their products.
The regulator is postponing a decision on whether to allow in-kind redemptions for WisdomTree’s Bitcoin Fund (BTCW) and VanEck’s Bitcoin Fund (BITB) and Ethereum Fund (ETHW) on Monday. It also postponed a final decision on Grayscale’s proposal to allow staking for its Ethereum Trust (ETHE) and Mini Ethereum Trust (ETH), which was submitted to NYSE Arca in February.
Cboe, an exchange affiliated with five other ether ETF issuers including Fidelity, Franklin Templeton, VanEck and Invesco/Galaxy, filed an amended filing in March for the Fidelity Ethereum Fund (FETH) and Franklin Ethereum ETF (EZET).
The SEC has not previously allowed staking in Ethereum spot ETFs. However, with new SEC Chairman Paul Atkins confirmed by the Senate last week, that could change quickly.
Several other jurisdictions, such as Hong Kong, Canada and Europe, have already given the green light to ETF staking, but this does not create significant pressure on the SEC, according to one expert.
“The SEC will take its time and will move as fast or as slowly as it sees fit,” said James Seyfarth, an ETF analyst at Bloomberg Intelligence. “They don’t care what other regulators do; in my experience, they can learn from it, but I don’t think approval from another regulator will make the SEC jump through hoops and rush. They’ll move at their own pace.”
The regulator now has until June 3 to make a decision on the in-kind redemption of Bitwise and WisdomTree products, and until June 1 to make a final decision on Grayscale's staking proposal.
