The U.S. Securities and Exchange Commission (SEC) has postponed its ruling on whether Grayscale can introduce staking features for its Ethereum-based ETFs. The decision—originally due soon—has been pushed to June 1, with a final deadline set for late October. The proposed change, filed by the New York Stock Exchange on February 14, would allow staking for the Grayscale Ethereum Trust ETF and the Grayscale Ethereum Mini Trust ETF.

Staking enables investors to earn rewards by locking their ETH to support blockchain operations. With annual staking yields estimated at 2.4% on Coinbase and up to 7% on Kraken, adding this feature could make Ether ETFs more appealing by offering passive income. So far, Ether ETFs have seen a cumulative net inflow of $2.28 billion since launching in 2024.

Grayscale isn’t alone in the race. BlackRock’s 21Shares iShares Ethereum Trust also filed for staking capabilities earlier this year and is awaiting SEC approval.

While the SEC hit pause on staking, it gave the green light to options trading for several spot Ether ETFs on April 9. This includes funds from BlackRock, Bitwise, and Grayscale, allowing for derivative strategies that cater to institutional investors. However, Ether ETFs are still lagging behind Bitcoin ETFs, which have seen over $35.4 billion in inflows compared to Ethereum’s $2.2 billion.

Ether’s market performance also reflects its struggles. As of April 14, ETH is trading below $2,000—far from its all-time high of $4,866 in November 2021 and even below its 52-week high of $4,112. In contrast, other tokens like XRP and Solana have outshined Ether during the current bull cycle.