Grayscale declares first Ethereum staking payout for US-listed ETF
Grayscale has announced the first-ever staking rewards distribution for a United States–listed spot crypto exchange-traded product, marking a notable milestone for crypto news and institutional blockchain technology adoption. The payout comes from Ether staking rewards generated by the Grayscale Ethereum Staking ETF (ticker: ETHE), which began staking in October and now passes that yield on to shareholders in cash rather than in ETH.
First US spot crypto ETP to pay staking rewards
Grayscale’s Ethereum Staking ETF (ETHE) will distribute approximately $0.08 per share to investors, funded by the proceeds of staking rewards earned on the underlying Ether holdings. The cash distribution is scheduled for Tuesday and will go to shareholders of record based on positions held at the close of trading on Monday.
Staking was enabled for Grayscale’s Ethereum products on October 6, with validation handled through institutional custodians and third-party validator providers, rather than Grayscale running its own public validators. This move made ETHE and the Grayscale Ethereum Mini Trust ETF (ETH) the first US-listed spot crypto ETPs to gain direct exposure to onchain Ether staking while remaining exchange-traded instruments. For crypto pur investors focused on yield, this structure blends traditional market access with blockchain-native rewards.
How Ethereum staking works in Grayscale’s structure
On a proof-of-stake blockchain like Ethereum, staking involves locking up ETH to help validate transactions and secure the network in return for periodic rewards paid in Ether. In the case of Grayscale’s ETF, those ETH rewards are periodically sold, and the proceeds are paid out in US dollars rather than passed through as additional ETH units. This keeps the product aligned with conventional ETF-style cash distributions while still monetizing onchain activity.
Grayscale’s products are not registered under the US Investment Company Act of 1940, the main law governing traditional ETFs, which is why they can incorporate staking where standard 1940 Act funds generally cannot. The trade-off is a different regulatory framework and investor protection profile, something sophisticated market participants now weigh carefully as blockchain technology products evolve.
Grayscale, founded in 2013, reports roughly $31 billion in assets under management across its digital asset vehicles, positioning it as one of the largest dedicated crypto asset managers in the world. Following the announcement, ETHE traded about 2% higher in the early Monday session, as data tracked by Yahoo Finance.
Growing pressure for staking in US spot Ether ETFs
While Grayscale is currently the only US-traded Ether fund actually distributing staking rewards, other major issuers are actively pushing regulators to allow similar structures. In March, Cboe BZX filed a proposed rule change with the US Securities and Exchange Commission (SEC) seeking permission for the Fidelity Ethereum Fund to stake part or all of its ETH through third-party providers, following a February filing for the 21Shares Core Ethereum ETF with comparable language.
In November, BlackRock registered an entity for a staked Ethereum ETF in Delaware, an early procedural step toward a product that would sit alongside its existing iShares Ethereum Trust ETF (ETHA) but with staking enabled. At present, ETHA, which launched in July 2024, offers spot Ether exposure without staking features. These moves show how fast the US market is shifting from simple price-tracking products toward yield-enhanced blockchain exposure.
Ether ETF flows and market leadership
US spot Ether ETFs began trading in July 2024, making 2025 the first full year of availability for mainstream investors. Over that period, the category attracted about $9.6 billion in net inflows, highlighting strong institutional and retail appetite for regulated ETH exposure. According to CoinMarketCap data, US spot Ether ETFs now collectively oversee around $18 billion in assets, underscoring their growing role in the broader crypto news landscape.
BlackRock’s iShares Ethereum Trust ETF (ETHA) is currently the largest US Ether ETF, with a market cap near $11.1 billion. Grayscale’s ETHE follows at roughly $4.1 billion, and the Grayscale Ethereum Mini Trust ETF accounts for another $1.5 billion in assets. For the crypto pur segment, Grayscale’s decision to actually pass on staking rewards represents a key proof point that institutional vehicles can share onchain yield, not just price exposure, as blockchain technology continues to integrate with traditional capital markets.
