Grayscale urges SEC to approve Ethereum ETF pledge, saying it has missed $61 million in profits

according to Bitcoin.com, asset management company Grayscale met with the SEC encryption working group on April 21st, applying to allow its Ethereum ETF (ETHE and ETH) for pledging operations. The company stated that, due to regulatory restrictions, the $8.1 billion in assets it manages has missed out on approximately $61 million in potential profits from product launch to February 2025. Grayscale presented three arguments: 1) similar products in Europe and Canada have successfully implemented pledging; 2) pledging can enhance the security of the Ethereum network; 3) risk control plans have been developed, including a "liquidity reserve". Coinbase Custody will provide technical support to mitigate seizure risks. The current US spot Ethereum ETP is prohibited from pledging, unable to fully reflect the underlying asset value. Grayscale urges the SEC to update regulatory rules in reference to traditional financial products.