Grayscale urges the U.S. SEC to approve ETH ETF staking, claiming it has missed out on approximately $61 million in profits

ChainCatcher news, according to Bitcoin.com, asset management company Grayscale met with the SEC's crypto working group on April 21 to apply for permission to stake its Ethereum ETF (ETHE and ETH). The company stated that due to regulatory restrictions, its managed assets of $8.1 billion have missed out on approximately $61 million in potential earnings from the product's launch until February 2025.

Grayscale presented three arguments:

1) Similar products in Europe and Canada have successfully implemented staking;

2) Staking can enhance the security of the Ethereum network;

3) A risk control plan has been established, including a "liquidity reserve."

Coinbase Custody will provide technical support to mitigate the risk of forfeiture. Currently, U.S. spot Ethereum exchange-traded products (ETPs) cannot fully reflect the value of the underlying assets due to the ban on staking. Grayscale urges the SEC to update regulatory rules in line with traditional financial products.