Grayscale Intends to Add Staking to its Proposed Ethereum ETF
According to a preliminary proxy statement filed on Tuesday, Grayscale Investments plans to include staking in their proposed spot Ethereum exchange-traded fund.
In a “consent solicitation statement” to investors, Grayscale proposed four items, including a process to create and redeem shares with cash and the option to stake Ethereum through the trust.
The company believes that allowing the Trust to stake Ethereum in exchange for consideration would help mitigate inflationary pressures caused by Ethereum’s proof-of-stake protocol and preserve the value of the Trust for shareholders.
This move follows similar steps taken by other firms competing for a spot Ethereum ETF, such as Fidelity which recently amended their ETF application to include staking provisions.
