SEC Delays Decision on Staking Feature for Invesco Galaxy ETH ETF — What’s Next?

The U.S. Securities and Exchange Commission has postponed its decision on whether the upcoming Invesco Galaxy Ethereum ETF can include Ethereum staking rewards as part of its structure. Though the delay grants more time for review, approval now appears possible in Q4 2025 or early 2026.

Jul 31, 2025 - 10:21
SEC Delays Decision on Staking Feature for Invesco Galaxy ETH ETF — What’s Next?

What's Going On?

  • Inquiry Scope: The SEC is evaluating whether staked ETH—tokens earning network participation rewards—can be integrated into the ETF’s yield model.
  • Implications: Inclusion of staking would offer investors passive yield plus capital appreciation within a regulated product.
  • Delay Signals: Though it postpones final word, it’s not a rejection—suggesting regulators are carefully weighing risks related to staking dynamics and investor protection.

Why It Matters

Stakeholder Significance
U.S. Investors Potential access to staking yields inside ETF structure
Institutional Players May accelerate staking-targeted asset strategies via ETF wrapper
Global Markets (UAE, India) Proof of product maturity may pave way for local ETF rollouts

 


Coinccino Insight

“The SEC’s pause is a reality check—not a no. Staking integration is complex, but its inclusion could redefine what yield means in regulated products. For institutions in the U.S., UAE, and India, this ETF may soon represent the best of trad‑Fi and DeFi merged.”