Grayscale’s Ethereum ETFs, such as ETHE and ETH, have become the first exchange-traded funds to enable staking in the United States.
The leading crypto asset manager unveiled the groundbreaking move today, confirming that investors can now earn passive rewards via the Grayscale Ethereum Trust ETF (ETHE) and its Grayscale Ethereum Mini Trust ETF (ETH).
The move makes ETH and ETHE the first U.S.-listed ETFs to enable staking, allowing investors to earn passive rewards while maintaining spot exposure to Ethereum.
Grayscale Activates Staking for Its Solana Trust
In addition, Grayscale also expanded the staking feature to its Solana Trust (GSOL), which currently trades on the OTCQX Market. According to Grayscale, this development offers investors a unique opportunity to participate in Solana staking directly through traditional brokerage accounts.
Notably, the company emphasized that it will passively stake the ETH and SOL held in its Ethereum ETFs and Solana Trust. According to the announcement, Grayscale will implement staking through institutional custodians and a diversified network of validator providers.
Through this offering, the crypto asset manager aims to provide investors with exposure to the long-term value accrual of Ethereum and Solana. It will also maintain the funds’ primary goal, which involves providing investors with exposure to the performance of SOL and ETH.
Potential Distribution of Rewards
Meanwhile, Crypto in America’s journalist Eleanor Terrett disclosed how Grayscale will distribute staking rewards to investors. Terrett noted that Grayscale will pay out staking rewards directly to ETHE investors.
However, she suggested that the company will strategically integrate the yield into the share prices of its Ethereum Mini Trust ETF and the Solana Trust. According to her, the staking feature will launch at today’s market open across all three investment products — ETHE, ETH, and GSOL.
In the meantime, the company plans to expand its staking offering to other investment products in the future.
Grayscale Enables Staking Offering Despite US Government Shutdown
Grayscale’s staking offering for its Ethereum and Solana funds comes on the heels of the U.S. government shutdown, which impacted the SEC’s routine operations, especially its ability to approve the launch of new investment products.
Despite the shutdown, Grayscale rolled out the staking feature across its Solana and Ethereum investment products. The asset manager clarified that its funds, particularly ETHE and ETH, operate outside the regulatory framework that governs traditional ETFs under the Investment Company Act of 1940.
While Grayscale has already introduced staking for its Ethereum ETFs, other issuers aiming to offer a similar feature, including BlackRock, are still awaiting the SEC’s decision.
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