Grayscales Ethereum ETF On The Brink Of Major Change With NYSEs Staking Proposal

The New York Stock Exchange has proposed a rule change to allow Grayscale's Ethereum Trust (ETHE) and Ethereum Mini Trust (EZET) to earn rewards by staking their Ethereum holdings. This would allow the trusts to potentially increase returns while keeping the assets with their current custodian. Grayscale argues this approach, designed solely to benefit shareholders, avoids issues with third-party pooling that have concerned the SEC. While ETHE has seen nearly $4 billion in outflows, making it the biggest loser among similar products since spot Ethereum ETFs were approved, EZET has only attracted $650 million. Competing Ethereum ETFs from BlackRock and Fidelity have benefited from lower fees and strong institutional support. Ethereum ETF inflows recently surpassed Bitcoin's for the first week of February. If approved, the NYSE's proposal could improve ETHE and EZET's performance and reduce outflows. Ethereum is currently trading at $2,645, down 20% over the last month.