IRS Gives Staking ETFs More Flexibility

[etfs]

The IRS and Treasury have recognized staking for ETFs—but there’s more than meets the eye. Analyst Greg Xethalis notes trusts can now adjust liquidity reserves and use financing to handle redemptions, a rare flexibility for grantor trusts.

Relief is limited to single-asset trusts, excluding mixed-asset funds, while staking providers must remain independent and offer slashing protections. Private or non-listed trusts are also excluded.

For investors and fund managers, understanding these nuances is key. Single-token ETFs with carefully structured operations are likely to dominate, offering tax-compliant staking exposure while protecting redemption rights.

[alex10]

Flexibility from the IRS is rare — staking ETFs just got a meaningful boost.

[Abdul Khan]

More flexible tax treatment could accelerate mainstream adoption of staking products.