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In its latest filing with the US SEC, Grayscale emphasized the potential benefits associated with allowing ethereum to be staked in its trust.
The company, known for its cryptocurrency investment products, is looking to transform its Grayscale ethereum Trust (ETHE) into an ethereum (eth) spot ETF following the successful conversion of its Grayscale bitcoin Trust in January.
in a preliminary proxy statement, Grayscale proposed four significant changes to facilitate this transformation. Changes include using eth backed shares to participate in staking via a proof-of-stake protocol, giving authorized participants the authority to create and redeem shares, moving to a daily fee evaluation model from the scheme current monthly and introduce a third. custodian equipped to manage shares through a general account.
Omnibus accounts pool funds to execute trades on behalf of multiple clients, effectively anonymizing the identities of individual investors.
Grayscale CEO Michael Sonnenshein expressed optimism regarding the proposed amendments and emphasized the potential to simplify and improve the experience for ETHE shareholders. The initiative is part of a broader industry trend, as indicated by a similar filing from Fidelity Investments, reflecting increased interest in ethereum ETFs with staking functionalities.
“In consideration for any staking activities in which the Fund may engage, the Fund would receive certain network rewards in the form of ether tokens, which may be treated as income to the Fund as compensation for services provided,” Fidelity said. presentation fixed.
Despite these developments, the outlook for SEC approval of spot Ether ETFs remains uncertain. Bloomberg analysts have expressed skepticism and suggested that the SEC could reject all pending applications. The skepticism arises from the SEC's nuanced approach to digital assets, particularly its classification of bitcoin (btc) as the only commodity, leaving ethereum's regulatory status in a gray area.
The cryptocurrency community hopes that the approval of ethereum ETFs can mimic the favorable market dynamics previously seen with bitcoin ETFs, even as regulatory challenges persist.
