Coinbase Custody to Power Staking for Solana ETFs as Issuers Amend Filings

In a significant development for cryptocurrency investment vehicles, major ETF issuers including Bitwise, Canary, and Grayscale have amended their Solana ETF proposals to include staking features following recent SEC guidance. The updated S-1 filings, submitted on June 15, 2025, introduce innovative Trust Staking Accounts that will allow these funds to participate in validator operations and generate additional yield for investors. Notably, Coinbase Custody has been selected as the institutional staking provider, bringing its robust security infrastructure and technical expertise to manage all staking operations. This move represents a strategic alignment with regulatory expectations while unlocking new revenue streams for potential Solana ETF investors. The inclusion of staking mechanisms could potentially make these ETFs more attractive by offering both capital appreciation and yield generation opportunities, setting a new precedent for cryptocurrency-based investment products in the regulated financial markets.

Solana ETF Issuers Amend Filings to Include Staking Features Following SEC Guidance

Bitwise, Canary, and Grayscale have revised their solana ETF proposals to incorporate staking mechanisms, a move prompted by SEC directives. The updated S-1 filings establish Trust Staking Accounts, enabling the funds to generate additional yield through validator participation.

Coinbase Custody will serve as the institutional staking provider, handling all technical operations while maintaining security protocols. Staking rewards may accrue as SOL tokens or cash equivalents, with Grayscale imposing a pre-activation condition for its product.

The structural enhancement transforms these ETFs into dual-purpose vehicles - offering both price exposure and yield generation. This development mirrors the institutional maturation seen in Ethereum-based products, potentially setting a precedent for future proof-of-stake asset offerings.

Coinbase and Gemini Vie for EU Crypto Licenses Under MiCA Framework

Coinbase and Gemini are accelerating efforts to secure operational licenses under the EU''s Markets in Crypto-Assets (MiCA) regulation, positioning themselves for pan-European expansion. Coinbase''s application with Luxembourg''s regulator nears approval, while Gemini pursues a fast-tracked license in Malta. The MiCA framework grants passporting rights across all 27 member states upon approval.

Luxembourg''s rigorous financial oversight contrasts with Malta''s reputation for expedited approvals, raising questions about regulatory consistency. Both exchanges aim to establish operational hubs, with Coinbase planning to add 20+ staff in Luxembourg by year-end. This strategic push comes as US crypto firms increasingly look to Europe for regulatory clarity.

Early movers like Bitstamp and MoonPay have already secured MiCA licenses, intensifying competition for market share. Some EU regulators express concerns about potential regulatory arbitrage as jurisdictions compete to attract crypto businesses.