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The SEC Delays Ether Spot ETF Collateral, "ETH Bull Run Thesis Evaporates," Earliest Rebound Possible in June
Original Article Title: "SEC Delays Ether Spot ETF Pledge, 'ETH Bullish Case Disappears,' Fastest Rebound Likely In June"
Original Article Author: 0xJigglypuff, from BlockTempo of Doo Wan Zone
The U.S. Securities and Exchange Commission (SEC) yesterday (14th) addressed multiple applications allowing cryptocurrency exchange-traded funds (ETFs) to conduct Ether (ETH) staking and in-kind creation and redemption rule change proposals. The SEC decided to delay in order to have more time for evaluation. Several decisions originally scheduled for mid-April have been postponed to early June this year.
Scope of Impact
SEC Assistant Secretary Sherry R. Haywood wrote in the VanEck Crypto ETF document. This indicates that the regulatory agency still maintains a high degree of caution regarding the innovative mechanisms involving cryptocurrency derivative financial products.
The commission believes that designating a longer period to take action on the proposed rule change is appropriate to have sufficient time to consider the rule change and the issues it raises.
Mainly affected are two Ether-related investment products under Grayscale: the Grayscale Ethereum Trust ETF and the Grayscale Ethereum Mini Trust ETF.
On February 14th this year, New York Securities Exchange Arca (NYSE Arca) submitted rule change applications for these two trusts, hoping to allow them to stake the Ether they hold, enabling investors to earn additional income. Originally expected on April 17th, the outcome is now postponed to June 1st.
The delay also affects the change submitted by the Chicago Options Exchange BZX (Cboe BZX) for the VanEck Bitcoin Trust (VanEck Bitcoin Trust, trading symbol HODL) and the VanEck Ethereum Trust, aiming to allow these two ETFs to adopt an "in-kind creation and redemption" mechanism. The SEC was originally expected to make a decision by April 19th, but this has been delayed to June 3rd.
Additionally, the decision regarding the physical issuance and redemption mechanism of the WisdomTree Bitcoin Fund has also been delayed until June 3.
Why is Staking and Physical Redemption Key?
“Staking” is a core feature of Proof-of-Stake (PoS) blockchains like Ethereum, where holders can lock up their tokens to validate blocks and receive rewards. If a Ethereum spot ETF can incorporate staking, it means that staking rewards can be distributed to investors, making an interest-bearing ETF very appealing to investors.
However, the introduction of staking has also brought about more complex regulatory issues, such as the nature of staking rewards, risk disclosure, ETF structure impacts, etc., and the SEC needs more time to carefully assess these.
“Physical issuance and redemption” is a common operating model in the ETF market, especially since the approval of the U.S. Bitcoin spot ETF earlier this year. This mechanism's importance has been further emphasized by the market. Compared to the prevalent cash create/redeem model, physical issuance and redemption allow Authorized Participants (APs) to directly exchange Bitcoin or Ethereum for ETF shares or vice versa.
This model is generally considered more efficient, with lower trading costs, reduced tracking error, and increased market competition. However, for volatile cryptocurrencies, the process of physical delivery, custody risks, and potential impact on market liquidity are aspects that the SEC must carefully consider.
Market Expectations for Ethereum Upside Disappointed
The market was initially highly anticipating an Ethereum spot ETF with staking functionality. However, even in the era of Trump, when faced with the complexities of cryptocurrency commodification, authorities have chosen to adopt a more cautious approach to uncertainty. Compared to the situation in January when multiple Bitcoin spot ETFs were approved, market expectations for an Ethereum spot ETF driving the market have significantly cooled off.
The main reason may lie in whether Ethereum's mechanism itself could be classified as a security and the complexity of staking and regulation brought about by the PoS mechanism.
Since the market's expectation for Ethereum to have staking functionality in early February, the price of Ethereum has halved. The initial optimism may have been mixed with the market's expectation of spot ETFs impacting market trends. The recent pessimism also reflects the disappointment of this expectation. To hope to return to the price and market trend of February, both spot ETF staking and Ethereum's reform are likely indispensable.
Compared to the uncertain regulation, Ethereum has recently undergone foundation reform and the Pectra upgrade. The upgrade is currently scheduled to go live on 5/7, with a possibility of being delayed again. However, overall, Ethereum may have to wait until close to June, or wait for changes in the overall economy, to show signs of a significant rebound.
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Mixin has launched USTD-margined perpetual contracts, bringing derivative trading into the chat scene.
The privacy-focused crypto wallet Mixin announced today the launch of its U-based perpetual contract (a derivative priced in USDT). Unlike traditional exchanges, Mixin has taken a new approach by "liberating" derivative trading from isolated matching engines and embedding it into the instant messaging environment.
Users can directly open positions within the app with leverage of up to 200x, while sharing positions, discussing strategies, and copy trading within private communities. Trading, social interaction, and asset management are integrated into the same interface.
Based on its non-custodial architecture, Mixin has eliminated friction from the traditional onboarding process, allowing users to participate in perpetual contract trading without identity verification.
The trading process has been streamlined into five steps:
· Choose the trading asset
· Select long or short
· Input position size and leverage
· Confirm order details
· Confirm and open the position
The interface provides real-time visualization of price, position, and profit and loss (PnL), allowing users to complete trades without switching between multiple modules.
Mixin has directly integrated social features into the derivative trading environment. Users can create private trading communities and interact around real-time positions:
· End-to-end encrypted private groups supporting up to 1024 members
· End-to-end encrypted voice communication
· One-click position sharing
· One-click trade copying
On the execution side, Mixin aggregates liquidity from multiple sources and accesses decentralized protocol and external market liquidity through a unified trading interface.
By combining social interaction with trade execution, Mixin enables users to collaborate, share, and execute trading strategies instantly within the same environment.
Mixin has also introduced a referral incentive system based on trading behavior:
· Users can join with an invite code
· Up to 60% of trading fees as referral rewards
· Incentive mechanism designed for long-term, sustainable earnings
This model aims to drive user-driven network expansion and organic growth.
Mixin's derivative transactions are built on top of its existing self-custody wallet infrastructure, with core features including:
· Separation of transaction account and asset storage
· User full control over assets
· Platform does not custody user funds
· Built-in privacy mechanisms to reduce data exposure
The system aims to strike a balance between transaction efficiency, asset security, and privacy protection.
Against the background of perpetual contracts becoming a mainstream trading tool, Mixin is exploring a different development direction by lowering barriers, enhancing social and privacy attributes.
The platform does not only view transactions as execution actions but positions them as a networked activity: transactions have social attributes, strategies can be shared, and relationships between individuals also become part of the financial system.
Mixin's design is based on a user-initiated, user-controlled model. The platform neither custodies assets nor executes transactions on behalf of users.
This model aligns with a statement issued by the U.S. Securities and Exchange Commission (SEC) on April 13, 2026, titled "Staff Statement on Whether Partial User Interface Used in Preparing Cryptocurrency Securities Transactions May Require Broker-Dealer Registration."
The statement indicates that, under the premise where transactions are entirely initiated and controlled by users, non-custodial service providers that offer neutral interfaces may not need to register as broker-dealers or exchanges.
Mixin is a decentralized, self-custodial privacy wallet designed to provide secure and efficient digital asset management services.
Its core capabilities include:
· Aggregation: integrating multi-chain assets and routing between different transaction paths to simplify user operations
· High liquidity access: connecting to various liquidity sources, including decentralized protocols and external markets
· Decentralization: achieving full user control over assets without relying on custodial intermediaries
· Privacy protection: safeguarding assets and data through MPC, CryptoNote, and end-to-end encrypted communication
Mixin has been in operation for over 8 years, supporting over 40 blockchains and more than 10,000 assets, with a global user base exceeding 10 million and an on-chain self-custodied asset scale of over $1 billion.
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