Grayscale urges SEC to approve Ethereum ETF pledge, claiming $61 million in missed earnings

According to Bitcoin.com, asset management company Grayscale met with the SEC's crypto working group on April 21 to apply for permission to pledge its Ethereum ETF (ETHE and ETH). The company stated that due to regulatory restrictions, it has lost approximately $61 million in potential returns on its $8.1 billion assets under management from product launch until February 2025. Grayscale presents three arguments: 1) Similar products in Europe and Canada have been successfully pledged; 2) Pledge can enhance Ethereum network security; 3) A risk control plan including 'liquidity reserve' has been developed. Coinbase Custody will provide technical support to mitigate the risk of confiscation. The current US spot Ethereum ETP cannot fully reflect the underlying asset value due to the prohibition of staking. Grayscale calls on the SEC to update regulatory rules based on traditional financial products.