Crypto: Grayscale innovates with an Ethereum ETF generating staking income

Grayscale reaches a historic milestone. For the first time in the United States, a crypto ETF will pay its investors income from Ethereum staking. This unprecedented movement is shaking up the codes of traditional finance and paving the way for a new generation of investment products combining cryptos and on-chain returns. In a context where regulations are being structured and innovation is becoming a strategic lever, this decision propels Grayscale to the forefront of a rapidly changing market.

An unprecedented distribution for a product listed in the United States

While Tom Lee anticipates Ethereum at $62,000, Grayscale announced on January 5 a unique initiative in the American crypto ETF market: the direct distribution of income from Ethereum staking to its shareholders.

In an official press release, the company specifies that holders of the Grayscale Ethereum Trust ETF (ETHE) will receive $0.08 per share, following the conversion into dollars of the rewards generated by staking. “This is the first staking-related distribution for a US-listed spot crypto ETP”has declared Grayscale. This payment, scheduled for the following Tuesday, applies to investors registered at the close of the previous day (Monday).

This distribution follows the activation of staking for Grayscale's Ethereum products, effective October 6, 2025. Validation operations are carried out by institutional custodians and third-party validators, guaranteeing a secure infrastructure that complies with market standards.

Unlike traditional ETFs governed by the Investment Company Act of 1940, Grayscale funds operate within a separate legal framework, giving them more flexibility to integrate on-chain mechanisms. Here is the essential elements to remember from this announcement:

• The product concerned: Grayscale Ethereum Trust ETF (ETHE), listed in the United States;
• The amount distributed: $0.08 per share, from staking rewards;
• The method: rewards converted into dollars, and not redistributed into Ether;
• The reference date: distribution based on assets recorded at the close of Monday;
• Infrastructure: staking operated via third-party validators and institutional depositories;
• The legal context: funds outside the scope of the Investment Company Act, allowing the integration of staking;
• The immediate impact: +2% increase in the price of the ETHE ETF.

With this operation, Grayscale positions itself as the first player to remunerate investors based on on-chain staking, but also as an innovation laboratory at the crossroads of traditional finance and blockchain technologies.

An announcement that could accelerate the race for ETF staking

Beyond this first operation, Grayscale could well pave the way for a new trend among large asset managers.

Several major competitors are working behind the scenes to also integrate staking mechanisms into their Ethereum products. In March 2025, Cboe BZX submitted a proposal to the SEC to allow the Fidelity Ethereum Fund to participate in staking through third-party providers.

The move followed a similar application filed in February for the 21Shares Core Ethereum ETF. In November, BlackRock also registered a staked Ethereum ETF in Delaware, a first regulatory step toward a product similar to Grayscale's, but its iShares Ethereum Trust ETF (ETHA), launching in July 2024, does not yet include staking.

The rise of these approaches illustrates a growing interest in products offering added value beyond simple exposure to the price of Ether. In 2025, Ethereum spot ETFs attracted $9.6 billion in inflows and now manage approximately $18 billion in assets.

Grayscale, with its 4.1 billion under management for ETHE and 1.5 billion for its Ethereum Mini Trust, is only exceeded by BlackRock and its ETHA at 11.1 billion. In a context where the margins of differentiation between ETFs are tenuous, the ability to generate yield via staking could become a decisive criterion for institutional investors and individuals alike.

With this first redistribution of income, Grayscale could redefine the contours of crypto financial products. While Ethereum staking is gaining momentum, the operation could set a precedent and accelerate the integration of decentralized logic in listed markets.