NYSE Proposes Rule Change to Allow Staking for Grayscale Ethereum Trusts

The New York Stock Exchange (NYSE) has proposed a rule change to allow the Grayscale Ethereum Trust (ETHE) and the Grayscale Ethereum Mini Trust (EZET) to stake their Ethereum (ETH) holdings. This initiative aims to enable the trusts to earn rewards on their staked ETH, potentially boosting returns and attracting institutional investors. Grayscale emphasizes that this approach is designed solely for the benefit of fund shareholders, with assets remaining under the custody of their current custodian, mitigating regulatory concerns. The proposal comes as ETHE has faced nearly $4 billion in outflows since the approval of spot Ethereum ETFs, while EZET has attracted only $650 million in inflows. Approval of the NYSE Arca proposal could enhance the appeal of ETHE and EZET, potentially curbing outflows. Currently, ETH is trading at $2,645, reflecting a 20% monthly loss.