Shareholders of Grayscale Ethereum Trust ETF (NYSEARCA:ETHE), currently trading at $33.17 with a market capitalization of $4.16 billion, approved three proposals to amend the trust agreement, enabling the trust to stake its Ether holdings and implement related changes, according to a press release statement based on a Securities and Exchange Commission (SEC) filing published Friday. InvestingPro data shows the trust has demonstrated remarkable momentum, with a 99.22% return over the past six months.
The amendments, approved by a majority of outstanding shares, allow the trust to participate in Ether staking and receive staking consideration. The first proposal, which enables the trust to stake Ether, was approved with 8,110,544 votes in favor, 781,612 against, and 144,806 abstentions.
The second proposal, approved with 5,557,314 votes in favor, 3,331,108 against, and 148,540 abstentions, allows the sponsor to receive a staking fee in addition to the existing sponsor’s fee. This staking fee is payable in Ether or other staking consideration and is calculated as a per annum percentage of any staking rewards earned.
The third proposal, which passed with 4,496,489 votes in favor, 4,400,126 against, and 140,347 abstentions, gives the sponsor authority to make certain amendments to the trust agreement with a 20-day notice to shareholders, provided specific conditions are met regarding the trust’s qualification for U.S. federal income tax purposes.
The consent solicitation process concluded at 4:00 p.m. New York City time on Monday after the required shareholder approval was obtained. In total, shareholders holding 99.75% of the trust’s outstanding shares consented to Proposal 1, 98.93% to Proposal 2, and 98.58% to Proposal 3.
The SEC filing also noted that while the trust’s shares began trading on NYSE Arca on July 23, 2024, under the original listing standards, the sponsor has submitted an application to transition the listing to NYSE Arca’s new generic listing standards. The trust does not expect to engage in staking until this transition is approved or deemed unnecessary.
These amendments were formalized in the Third Amended and Restated Declaration of Trust and Trust Agreement, executed Thursday. The information is based on a press release statement and the related SEC filing.
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