Grayscale Enables Staking for Spot Ethereum Exchange-Traded Products in the US

Crypto asset manager Grayscale has enabled staking for its US Ethereum Trust ETF (ETHE) and its Ethereum Mini Trust ETF (ETH) products. The move allows investors to earn additional yield on their holdings

Grayscale has also activated staking for its Grayscale Solana Trust (GSOL), which is yet to be converted into an ETF

Grayscale Launches Staking For US ETPs

Grayscale announced on Monday that its Ethereum ETFs, the Grayscale Ethereum Mini Trust ETF and the Grayscale Ethereum Trust ETF (ETHE), were now the first US-listed spot crypto funds offering staking. The asset manager called the development a “first-mover milestone.” The firm has also enabled staking on its Grayscale Solana Trust (GSOL) fund, which is awaiting regulatory approval for conversion into an ETP. If approved, it would become one of the first spot Solana ETPs to enable staking. By enabling staking across its Ethereum and Solana products, Grayscale can give investors exposure to the “long-term value accrual of these networks, while maintaining the funds’ core objectives.”

“Today, Grayscale Ethereum Mini Trust ETF (Ticker: $ETH) and Grayscale Ethereum Trust ETF (Ticker: $ETHE) have become the first U.S.-listed spot crypto exchange-traded products (ETP) to enable staking, another first-mover milestone for the firm. Grayscale Solana Trust (OTCQX: $GSOL)* has also enabled staking. Pending regulatory approval of GSOL’s uplisting to an ETP, it would become one of the first spot Solana ETPs to enable staking.”

First Mover Innovation

Staking a portion of its Ethereum and Solana holdings enables Grayscale to give its customers exposure to ETH and SOL, while earning network rewards. Grayscale will stake its holdings passively through institutionalized custodians and validator partners to help secure protocols and support long-term network resilience. Grayscale CEO Peter Mintzberg stated,

“Staking in our spot Ethereum and Solana funds is exactly the kind of first mover innovation Grayscale was built to deliver. As the #1 digital asset-focused ETF issuer in the world by AUM, we believe our trusted and scaled platform uniquely positions us to turn new opportunities like staking into tangible value potential for investors.”

ETHE and ETH are exchange-traded products under the Securities Act of 1933, rather than the Investment Company Act of 1940, making them structurally distinct from ETFs governed by the Investment Company Act. However, they follow the same legal framework used for spot Bitcoin ETFs

“ETHE and ETH hold digital assets; however, an investment in ETHE and ETH is not a direct investment in digital assets.”

Industry Waits For Staking ETF Approvals

The development comes as the industry waits for the United States Securities and Exchange Commission (SEC) to approve the first US-listed Ether staking ETFs. Such an approval could bring substantial institutional capital into the industry. 10x Research’s head of research, Markus Thielen, stated,

“This would mark a monumental structural shift in how institutional capital flows into Ethereum, unlocking a new era of yield-driven participation.”

It also comes three months after the REX-Osprey Solana staking ETF debuted on the Cboe BZX Exchange, registering $33 million in trading volume and $12 million in inflows on opening day. The fund was the first Solana staking ETF under the Investment Company Act of 1940. The Investment Company Act allows crypto ETFs to hold most of their assets directly and distribute staking rewards wherever applicable.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice