• The SEC postponed its decision on Grayscale’s application to permit staking in its spot Ether ETF products pending the resumption of incoming Chair Paul Atkins.
• The delay comes at a time when inverse ETH ETFs are among the best-performing ETFs in 2025.
• ETH could face another rejection at a key descending trendline resistance that has lasted for the past three weeks.

Ethereum (ETH) is up 2% on Monday, erasing some of its gains earlier in the day upon notice that the Securities and Exchange Commission (SEC) was delaying its decision on Grayscale’s application to allow staking in its spot Ether ETF products.

The SEC delayed deciding on the NYSE’s application for Grayscale to permit staking within its two spot ETH ETF products, the Grayscale Ethereum Trust (ETHE) and the Grayscale mini Ethereum Trust (ETH).

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act, designates June 1, 2025, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change,” the notice states.

Many see the delay as a customary approach until President Trump’s pick for SEC Chair, Paul Atkins — who has shown support for digital assets — is sworn into office. The Senate approved Atkins’ nomination last week, and he’ll begin his duties as Chair after Trump signs his confirmation.

Most ETF analysts, including Bloomberg’s James Seyffart, expect the SEC to approve staking in these funds in 2025.

Several issuers initially included staking in their spot ETH ETF applications. However, they eventually removed the feature before launching as the regulator wasn’t comfortable with the concept at the time.

With the resignation of former SEC Chair Gary Gensler in January, the agency may have altered its stance on such applications, considering its U-turn on several crypto-related cases since the beginning of the year.

An approval could mark a turnaround for ETH ETFs, which have been experiencing increased outflows in the past two months. The funds have seen net inflows on only four trading days since February 20, per Farside Investors data.

In contrast, two leveraged ETFs — T-Rex 2X Inverse Ether Daily Target (ETQ) and ProShares UltraShort Ether (ETHD) — tracking twice the inverse of ETH’s price are among the best-performing ETFs globally in 2025, with YTD returns of 148% and 162%, respectively, at press time.

According to Standard Chartered and Sygnum analysts, staking could boost inflows into ETH ETFs and cause a rally in the cryptocurrency’s price.

Ethereum experienced $77.86 million in futures liquidations in the past 24 hours, per Coinglass data. The total amount of long and short liquidations is $43.16 million and $34.69 million, respectively.

ETH bounced off the $1,522 support level last Friday and is on the verge of tackling a key descending trendline resistance extending from March 25. A failure to move above the trendline could strengthen its resistance, potentially prompting increased sell orders whenever ETH’s price approaches it. Such a move could send ETH to test the $1,522 support.

ETH/USDT daily chart

However, if ETH overcomes this resistance, it faces another key hurdle at the upper boundary of a four-month descending channel.

The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) are aiming to test their neutral level lines. A firm crossover to the upper side indicates rising bullish momentum.

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