Gracy Chen Endorses ETH ETF Surge as SEC Clears Staking Rules, Igniting Renewed Institutional Confidence in Ethereum Investment Products

On June 11, Gracy Chen, CEO of Bitget Global, stated via X, “I’m still bullish on $ETH.” Chen cited three consecutive weeks of net inflows into ETH ETF products as a clear indicator of strong investor demand. She further highlighted that the SEC’s recent guidance on crypto staking presents a pivotal moment for Ethereum. The approval for staking could “unlock a true $ETH cycle,” she noted. The remarks followed the SEC’s May 29 statement, which clarified that various staking models, including self-staking and delegated staking, do not violate securities law, creating renewed optimism within the crypto markets.

SEC Greenlight Clears Path for ETH ETF Growth

The U.S. Securities and Exchange Commission (SEC) clarified on May 29 that crypto staking practices are exempt from securities registration. The Division of Corporation Finance stated that protocol staking activities, whether custodial or non-custodial, do not require SEC registration. This decision reshapes the ETH ETF landscape, where staking was previously a key hurdle. The regulatory update included provisions that enhancements like slashing protection or asset bundling do not automatically qualify staking as a securities transaction. 

SEC Commissioner Hester Peirce supported the move, emphasizing staking as a foundational component of proof-of-stake networks. Peirce explained that the guidance applies to “persons who self-stake certain covered crypto assets on a proof-of-stake or delegated proof-of-stake network.” However, SEC Commissioner Caroline Crenshaw opposed the interpretation. Crenshaw warned that the guidance dismisses the Howey Test, stating, “This is yet another example of the SEC’s ongoing ‘fake it ‘till we make it’ approach to crypto.”

ETH ETF Inflows Indicate Investor Confidence

Ethereum spot ETFs have recorded nine straight days of net inflows as of June 10. Total net inflow reached $125 million on that day alone. Among the ETH ETF products, Blackrock’s ETHA led with a single-day inflow of $80.5864 million. The historical net inflow for ETHA now stands at $4.971 billion. Fidelity’s FETH followed with a $26.3205 million inflow on June 10, bringing its total to $1.555 billion. As of the latest report, the total net asset value of all ETH ETF products amounts to $10.650 billion. The net asset ratio, calculated as the market value of ETFs versus Ethereum’s total market cap, currently sits at 3.18%.

Source: Gracy Chen X Post on June 11, 2025

Nate Geraci, President of the ETF Store, described the SEC’s staking update as a regulatory milestone. Geraci noted, “This removes a key roadblock for ETH ETF issuers looking to incorporate staking models.” Despite this progress, Geraci also called for further clarity from the Internal Revenue Service (IRS), particularly around how staking rewards will be taxed in ETF structures.

ETH Staking Approval Could Open New Revenue Streams

SEC’s position on staking alters the outlook for ETH ETF development. If staking is integrated within these ETFs, fund managers could unlock additional yield streams. This shift may encourage higher institutional participation in ETH ETF markets, especially from investors seeking both capital appreciation and staking rewards. Regulatory clarity could also enhance Ethereum’s credibility among traditional financial institutions. Peirce noted that prior uncertainty had discouraged U.S.-based participation in blockchain infrastructure. With SEC guidance now in place, confidence in regulated crypto investments appears to be rising. However, concerns persist. Crenshaw’s dissent underscores ongoing internal disagreements at the Commission. The SEC’s stance remains vulnerable to legal challenges or political shifts, especially given its historical opposition under former Chair Gary Gensler.

Forward Momentum Expected for ETH ETF Market

ETH ETF products are currently witnessing sustained demand, supported by regulatory clarity and institutional interest. Gracy Chen’s endorsement reinforces optimism around Ethereum’s future, particularly if staking becomes part of ETF offerings. The new SEC guidance may accelerate the next phase of Ethereum adoption in mainstream markets. Combined with growing inflows and improved transparency, ETH ETF structures now present a more compelling investment proposition. Market analysts anticipate that further regulatory decisions, especially from the IRS, will shape the long-term viability of staking-integrated ETFs. Until then, the ETH ETF market is poised for continued growth, buoyed by investor appetite and improved policy support.