USDCrypto ETF Shake-Up: NYSE, Hashdex, Osprey, and More Drive Big Changes
NYSE Proposes Rule Change to Allow Ether Staking in Grayscale's Spot ETFs
The NYSE has filed a proposal with the SEC on behalf of Grayscale to allow staking in its spot Ethereum ETFs, specifically the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF (ETH). If approved, this would enable Grayscale to stake Ether, potentially earning staking rewards as income for the funds.
However, Grayscale clarifies it will not guarantee specific returns to investors. The proposed changes aim to enhance the ETFs' efficiency in creation and redemption processes while beneficially tracking returns. The estimated staking reward rate for Ether is currently 2.06%. This proposal follows a similar initiative from 21Shares, which previously adjusted its staking plans after the SEC initially restricted staking rewards in ETFs. There is speculation that the SEC may adopt a more favorable stance on crypto-related staking under a future Trump administration.
Hashdex Launches Nasdaq Crypto ETF, Offering Bitcoin and Ethereum Exposure
Hashdex has launched the Hashdex Nasdaq Crypto Index US ETF (NCIQ), which offers U.S. investors exposure to both bitcoin (BTC) and ethereum (ETH) through a single exchange-traded fund. Trading under the ticker NCIQ on Nasdaq since February 14, 2025, the ETF tracks the Nasdaq Crypto US Index (NCIUS), which focuses solely on bitcoin and ethereum. The NCIQ features a 0.25% annual management fee for 2025, rising to 0.50% thereafter. With the combined market value of BTC and ETH exceeding $2.3 trillion, this ETF is notable as the first U.S.-listed multi-asset crypto exchange-traded product (ETP).
Hashdex's CEO highlighted that the ETF simplifies access for investors, eliminating the need to buy coins or use single-asset products. Backed by custodians like Coinbase Custody and Bitgo Trust, the launch aligns with the increasing demand for crypto ETFs in the U.S., with sector assets surpassing $120 billion.
Osprey Funds Seeks SEC Approval to Convert Bitcoin Trust to ETF for Lower Fees and Enhanced Liquidity
Osprey Funds is seeking approval from the SEC to convert its Osprey Bitcoin Trust (OBTC) into an exchange-traded fund (ETF), aiming to enhance liquidity and reduce fees for investors. This initiative follows the unsuccessful termination of a deal to transfer OBTC’s assets to Bitwise's ETF after lacking regulatory approval. Currently, OBTC, which tracks Bitcoin prices via the Coin Metrics CMBI Bitcoin Index, has $181 million in assets under management as of January 2025.
Despite a rise in OBTC's unit price over the past year, it remains below its original peak. Osprey CEO Greg King believes that ETF conversion is the most secure path for their Bitcoin investment offerings. Simultaneously, Osprey is engaged in a lawsuit against Grayscale, alleging misleading advertising related to Grayscale's own trust-to-ETF conversion efforts. The proposed ETF structure could broaden accessibility and potentially lower investor fees significantly.
This article has been refined and enhanced by ChatGPT.
