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Grayscale Launches Crypto ETFs Staking, Unlocking Ethereum and Solana Rewards for Investors

Grayscale, a major player in the U.S. digital asset market, has taken a landmark step in bridging traditional finance with cryptocurrency by launching staking for its Ethereum Trust ETF ($ETHE), Ethereum Mini Trust ETF ($ETH), and soon, its Solana Trust ($GSOL). This innovative feature allows investors—both institutional and retail—to earn rewards directly from their ETF holdings without the need to manage cryptocurrency themselves, simplifying access to a historically complex market.

Introducing U.S. Spot ETFs With Staking Rewards

On October 6, 2025, Grayscale officially became the first U.S.-based firm to offer staking on spot crypto ETFs, setting a precedent for the broader adoption of digital assets in traditional investment vehicles. The firm initially staked 32,000 ETH, representing approximately $150.56 million at current market prices. This step demonstrates not only Grayscale’s confidence in Ethereum but also the growing acceptance of staking as a mainstream financial tool.

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Staking rewards can be received in two flexible ways. Investors holding $ETHE can opt for cash payouts, providing immediate returns on their investment. Alternatively, holders of the $ETH ETF can reinvest their staking rewards, allowing their holdings to compound over time. This dual approach caters to a diverse investor base: those seeking passive income and those prioritizing long-term accumulation of digital assets.

Simplifying Staking With New Regulatory Rules

Previously, launching staking within U.S. spot ETFs required extensive SEC approval, a process that often delayed product introductions. Grayscale’s recent utilization of the SEC’s new “Generic Listing Standards” allows ETFs to integrate staking features with just shareholder approval. This regulatory update streamlines the process, enabling firms like Grayscale to introduce innovative crypto-based investment products faster than ever. It also highlights the gradual modernization of U.S. financial regulations to accommodate digital asset markets.

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Grayscale had initially withdrawn its staking proposal from the SEC website on September 26, citing regulatory constraints. The latest framework has effectively removed these barriers, opening the door for a wider rollout of staking-enabled ETFs.

How Staking Rewards Are Structured

The staking rewards vary depending on the ETF. For $ETHE, investors receive 77% of the staking yields, while the remaining 23% is allocated to the ETF sponsor, custodian, and staking providers. Meanwhile, $ETH holders benefit from a higher allocation, receiving 94% of rewards, with the remaining 6% reserved for service providers. These differences in reward structures reflect competitive strategies among ETF issuers and could influence investor decisions based on which products offer the most favorable returns.

Impact on Investors and the Broader Crypto Market

Grayscale’s move is expected to attract both retail and institutional investors by offering exposure to digital assets alongside the benefits of staking rewards. Investors now have the ability to earn from price appreciation of Ethereum and Solana while simultaneously receiving staking yields, blending traditional investment strategies with cryptocurrency incentives. This represents a significant milestone in making digital assets more accessible and appealing to a broader audience.

The integration of staking into ETFs also serves as a bridge between conventional financial markets and blockchain technology. Large institutional investors who may have been hesitant to directly hold cryptocurrencies can now participate through regulated ETFs, reducing perceived risk while maintaining exposure to potential high returns. With Solana-based ETFs set to follow, staking opportunities will expand further, potentially drawing even greater institutional capital into the market.

Market Implications and Future Outlook

The introduction of staking in ETFs marks a pivotal moment for U.S. crypto investment products. Traditional finance is increasingly adopting mechanisms from decentralized finance (DeFi), and Grayscale’s initiative demonstrates a fusion of both worlds. As staking becomes more mainstream, it could set a precedent for other ETF providers, encouraging them to offer similar incentives to attract investors. This could lead to a wave of innovation across the ETF landscape, positioning staking as a standard feature in digital asset investment products.

Moreover, the simplicity of the process—allowing investors to earn rewards without managing wallets or private keys—removes key adoption barriers, particularly for retail investors. This is crucial for the long-term growth of cryptocurrency markets, as easier access encourages broader participation and fosters greater market liquidity.

Conclusion: A New Era for Crypto Investment in the U.S.

Grayscale’s staking-enabled ETFs are more than just a new product offering; they represent a structural shift in how digital assets can be integrated into traditional investment strategies. By providing flexible reward options, simplified access, and a regulated framework, Grayscale is making it easier for investors to participate in the cryptocurrency ecosystem without the operational complexities of holding coins directly.

As U.S. regulators continue to refine guidelines for digital assets, the precedent set by Grayscale may serve as a model for other firms exploring staking or similar DeFi-inspired features within regulated ETFs. This could transform the way Wall Street interacts with digital currencies, creating a bridge between conventional finance and emerging blockchain technologies.

Investors now have an unprecedented opportunity to earn Ethereum and Solana rewards while benefiting from regulated, traditional investment vehicles. The innovation is likely to attract further institutional interest, encourage long-term holdings, and foster confidence in the U.S. crypto market. With the introduction of staking, Grayscale has positioned itself at the forefront of a rapidly evolving financial ecosystem, where digital asset rewards can coexist seamlessly with traditional investment products.

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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