SEC Delays Ethereum ETF Decision to June 2025
Key Takeaways
- The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Ethereum (ETH) ETFs with staking functionality to June 1, 2025.
- The decision regarding the so-called “in-kind” redemption for ETH and Bitcoin ETFs has also been delayed to June 3, 2025.
- Several providers including Grayscale, VanEck, and Fidelity have submitted applications – BlackRock has not yet filed but has shown interest.
- The SEC is in discussions with industry stakeholders about regulatory frameworks.
- The market reaction has been muted so far – open interest in ETH is declining.
Background: What is the SEC planning?
The U.S. Securities and Exchange Commission (SEC) has postponed its decision on two key aspects of Ethereum ETFs: staking and the so-called “in-kind” redemption.
Staking involves locking up ETH on the network to validate transactions and earn rewards. ETF providers like Grayscale want to integrate this feature into their products. The SEC is currently reviewing whether this aligns with existing regulations. The decision on Grayscale’s application has been postponed to June 1, 2025.
What does “in-kind” redemption mean?
“In-kind” redemption allows ETF investors to exchange shares directly for the underlying asset – in this case, ETH or BTC. This differs from the current standard where ETFs are settled in cash.
This method offers two advantages: it can help avoid taxable events and increase liquidity. Here too, the SEC has delayed its decision until June 3, 2025.
Which providers are affected?
In addition to Grayscale, other major providers such as Bitwise, VanEck, 21Shares, Fidelity, Invesco Galaxy, and Franklin Templeton have submitted applications for ETH ETFs with staking functionality. Only BlackRock has not yet officially filed an application but has expressed a positive outlook on the topic.
Robert Mitchnick, Head of Digital Assets at BlackRock, publicly emphasized the benefits of staking for ETF products.
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Roundtable Discussions with the Industry
The SEC is in close communication with various market participants. These include Jito, MultiCoin Capital, and BlackRock, among others. These discussions focus on the regulatory design of crypto ETFs, particularly with respect to staking and in-kind models.
How is the market reacting?
Despite the regulatory developments, the market has remained largely unaffected. According to data from Coinglass, open interest in Ethereum derivatives has dropped from around USD 26 billion in February 2025 to below USD 20 billion. This signals continued caution among investors.
From a technical analysis perspective, ETH is currently forming a bearish pattern that could indicate further price declines. Should the price fall below USD 1,500, it would be a negative signal. Conversely, a rise above the USD 1,800 mark could spark renewed buying momentum.
Our Assessment
The SEC is taking its time in deciding on Ethereum ETFs with staking and in-kind settlement – a sign that regulatory clarity is still lacking. For you as an investor or observer of the crypto market, this is an important signal: the development of ETH ETFs remains a work in progress with an uncertain outcome.
The coming weeks leading up to early June could be decisive. If approvals are granted, it could strengthen Ethereum as an asset class. Until then, the situation remains uncertain – both in terms of regulation and market sentiment.
Sources
- Coinglass
- TradingView
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $1,588.46 |
| 24h % | -2.04 % |
| 7d % | 7.71 % |
| 30d % | -15.90 % |
| 60d % | -42.02 % |
| 1y % | -49.00 % |
| Market Cap | $191,821,837,594.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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