Grayscale stakes $150M in Ether after launching staking-enabled crypto funds

Grayscale has staked $150 million worth of Ether, a day after it launched the crypto industry’s first US-based exchange-traded products that allow investors to earn passive income from staking rewards.

On Oct. 7, the prominent digital currency asset management firm staked 32,000 Ether, valued at around $150 million, according to on-chain data tracked by Lookonchain. 

Grayscale locked the ETH just a day after it introduced staking capabilities across three of its flagship products, namely the Grayscale Ethereum Trust ETF (ETHE), the Grayscale Ethereum Mini Trust ETF (ETH), and the Grayscale Solana Trust (GSOL).

Those holding the Ethereum investment vehicles can now earn a share of the staking rewards generated from the fund’s staked Ether.

Grayscale has structured the rewards to flow back to shareholders after deducting custodian and sponsor fees.

According to its ETP Staking Policy filed with the SEC, those holding shares of the Grayscale Ethereum Trust ETF (ETHE) would be entitled to receive up to 77% of the staking rewards, while those holding the Ethereum Mini Trust (ETH) could receive up to 94%, depending on the fee tiers disclosed.

With this, passive investors gain additional returns simply by holding shares of a regulated fund, without dealing with the complexities of setting up validators or managing private keys.

Furthermore, staking rewards will be treated as assets of the fund, offering an added yield layer that could prove attractive in an increasingly competitive ETF market.

Both ETHE and ETH funds are registered under the Securities Act of 1933, which classifies them as exchange-traded products, or ETPs, making them structurally distinct from traditional ETFs governed under the Investment Company Act of 1940, a framework that comes with stricter compliance standards and has, in rare cases, permitted staking features on a case-by-case basis.

Despite this structural distinction, Grayscale’s Ethereum products are among the first to implement staking rewards within the US market.

SEC takes a cautiously optimistic approach

Grayscale’s launch sets a notable precedent at a time when the Securities and Exchange Commission is still treading carefully on staking-related products and weighing how such features align with existing securities regulations.

While some firms, including 21Shares and BlackRock, have also filed to add staking to their Ethereum ETPs, the SEC has yet to approve those proposals. 

This has given Grayscale a clear head start in an increasingly competitive market and made Ethereum ETFs a more appealing alternative to their Bitcoin counterparts, which offer no yield component.

Timing-wise, the launch comes just as the SEC implemented a more streamlined listing process for crypto funds, marking a clear step toward removing the procedural bottlenecks that have long held back broader approvals across the digital asset market.

NYSE Arca listed ETHE and ETH under the “generic” listing standards for commodity-based trusts last month.

In the meantime, Grayscale has also expanded its offerings with the launch of the Grayscale CoinDesk Crypto 5 ETF (GDLC), which began trading on NYSE Arca in late September, tracking an index of five major cryptocurrencies: Bitcoin, Ether, Solana, XRP, and Cardano.

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