Crypto Whizz Kids Demand Ethereum Staking: $61M in Rewards Just Sitting There!

Once upon a time in the land of shiny coins and blinking screens, Grayscale tiptoed up to the bigwigs at the SEC, flapping their papers and whispering about magical rewards hiding in the depths of Ethereum ETFs. 🕵️‍♂️✨

Grayscale’s Grand Plea: Let Us Stake or Let Us Cry Into Our Crypto Cushions!

On a fine spring day in Washington D.C., a bunch of sharply dressed crypto conjurers from Grayscale gathered with the SEC’s Crypto Task Force—who probably had never seen so many buzzwords at once. Their mission? To tweak the pesky rules that keep Ethereum exchange-traded products (ETPs) from staking their claim to a pot of gold (or rather, $61 million in rewards!).

In a dusty scroll known as a memorandum—because “memo” sounds too boring—Grayscale laid out their master plan to fix their Form 19b-4 filings for the Grayscale Ethereum Trust ETF (ETHE) and its mini-me, the Ethereum Mini Trust ETF (ETH). Their big ask: “Please, oh please, can we stake? We promise it’s for the good of Ethereum and our wallets.” Craig Salm, the chief legal wizard, nodded gravely and said, “We cherish this chance to chat with the mighty SEC Crypto Task Force.”

The papers revealed a spellbinding statistic: U.S. Ethereum ETPs—guardians of a hefty $8.1 billion in assets—have been sitting out the staking party while their cousins overseas danced away with rewards. Those missed out rewards? A jaw-dropping $61 million, and that’s without counting the magical effects of compounding—the crypto equivalent of a pot that keeps bubbling.

ETH ETPs have been staring longingly at $61 million slipping away since their grand launch, as these pixies of profit flitted off to non-US ETPs and other staking enthusiasts.

“Staking isn’t just some shiny trick,” Grayscale enthused. “It’s a fortress-builder for the Ethereum kingdom and a treasure chest for the shareholders. Basically, by letting us validate transactions on Ethereum’s blockchain castle, we get shiny new ETH rewards.” Cryptic enough? You bet.

As if that wasn’t enough, Grayscale rolled out a bag of clever tricks: the “Liquidity Sleeve” (sounds like a snazzy medical gadget), short-term cash loans from friendly custodians, and a revolving credit thingamajig designed to keep investors from hopping off during awkward unstaking interludes.

Wrapping it all up with a bow, Grayscale insisted that the dusty old rules must be swept away to welcome the brave new world of staking Ethereum ETPs. According to their enchanted document:

Spot ETH ETPs over here aren’t really the full package because they can’t stake their own coins yet. Boo.

Meanwhile, across the ocean in Europe and Canada, staking has been happening happily without causing chaos—so why not join the club? Grayscale confidently declared, “With our smarts, partners, and trusty Coinbase Custody guarding our backs, we can stake responsibly, dodge tax goblins, and handle the dreaded slashing risks.”

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2025-04-28 05:57