The SEC has postponed the Ether spot ETF staking, "Favourable Information for ETH has completely disappeared" and the fastest Rebound may have to wait until June.

The US SEC announced the postponement of the review decision on the ETH pledge ETF and physical redemption mechanism, extending the deadline for a number of applications such as Grayscale and VanEck to early June, and the market expects that the Ethereum rally may be hopeless in the short term. (Synopsis: Hong Kong Ethereum spot ETF officially approved to "provide staking staking" function, the United States is also fast? (Background added: Ethereum fell below $1500, what does V God think?) Vitalik: I don't look) The U.S. Securities and Exchange Commission (SEC) yesterday (14) in response to a number of applications to allow cryptocurrency exchange-traded funds (ETFs) to conduct Ether (ETH) staking (Staking) and in-kind (in-kind) subscription and redemption rule change proposals, the SEC decided to postpone to buy more time for evaluation, and several decisions originally scheduled for mid-April have been postponed until early June this year. Impact SEC Assistant Secretary Sherry R. Haywood wrote in a document about the VanEck crypto ETF. This suggests that regulators remain highly cautious about these innovative mechanisms involving crypto-derived financial products. The Commission considered that it would be appropriate to designate a longer period of time to take action on the proposed rule change to allow sufficient time to consider the rule change and the issues it raised. The main impact is Grayscale's two Ether-related investment products: Grayscale Ethereum Trust ETF and Grayscale Ethereum Mini Trust ETF. On February 14 this year, the New York Stock Exchange Arca (NYSE Arca) submitted a rule change application for the two trusts, hoping to allow them to stake their Ether holdings to earn additional income for investors, which was originally due on April 17, but has now been postponed to June 1. Changes to the VanEck Bitcoin Trust (HODL) and VanEck Ethereum Trust filed by CBOE BZX were also delayed, with the application target allowing the two ETFs to use a "physical subscription and redemption" mechanism, and the SEC was supposed to make a decision by April 19, but it was delayed until June 3. In addition, the decision on the in-kind redemption mechanism of the WisdomTree Bitcoin Fund was also delayed until June 3. What is the key between staking and physical redemption? "Stake" is the core function of proof of stake (Proof-of-Stake, PoS) used by Ethereum, holders can lock (pledge) their tokens to obtain verification blocks and get corresponding rewards, if the Ether spot ETF can join the staking function, which means that the income generated by the staking can be distributed to investors, and ETFs with interest are very attractive to investors. However, the introduction of pledges also raises more complex regulatory issues, such as the nature of pledge proceeds, risk disclosures, and the impact of ETF structure, which the SEC needs to carefully evaluate. "Physical subscription and redemption" is a common mode of operation in the ETF market, especially after the US Bitcoin spot ETF was approved in large numbers at the beginning of this year, the importance of this mechanism has been more emphasized by the market, compared to the current cash Create/Redeem, physical redemption allows APs to directly exchange Bitcoin or Ether for ETF shares, or exchange ETF shares back to Bitcoin or Ether. This model is often considered more efficient, less transacted, less tracking, and more competitive in the market, but for volatile cryptocurrencies, the physical delivery process, custody risks, and potential impact on market liquidity are also aspects that the SEC must carefully consider. Market expectations of Ether fell short The market originally had high expectations for Ether spot ETFs with staking functions, but even in the Trump era, in the face of complex financialization of cryptocurrency commodities, the authorities chose to face uncertainty more cautiously. Compared to the approval of multiple Bitcoin spot ETFs in January this year, the market's expectations for the market from Ether spot ETFs have cooled significantly. The main reason may be whether the mechanism of Ether itself can be classified as a security, and the complexity of staking and regulation that comes with PoS mechanisms. Since the beginning of February when the market expects Ethereum to have a staking function, the price of Ethereum has been halved, and the original optimism may be mixed with the existence of many markets for spot ETFs to impact the market, and the recent pessimism also reflects the failure of this expectation, if you want to expect to return to the price and market in February, the pledge of spot ETFs and the reform of Ethereum may be indispensable. In contrast to uncertain regulation, Ethereum is also undergoing foundation reform recently, as well as Pectra upgrades, which are currently scheduled to go live on 5/7 and may be postponed again, but on the whole, Ethereum may not show signs of a sharp rebound until close to June, or for changes in the overall economy. Related stories Ethereum falls back five years ago! "ETH/BTC" fell below 0.02 to hit a new low since 2020, and community FUD has not stopped Ethereum OG sprayed "ETH is not saved": the foundation has to admit four major mistakes, and in 2021 it has mastered the world's largest computing power ETH Hangzhou Participant survey: Ethereum is frustrated in middle age, and there is no hope of a new price high in three years (SEC postpones the pledge of Ether spot ETF, "ETH benefits disappear" The fastest rebound may be in June〉 This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".