Grayscale Ethereum ETF Becomes First U.S. Crypto Product to Distribute Staking Rewards

Source: CoinTribune Original Title: Grayscale’s ETF Innovation Brings Staking To Investors Original Link: https://www.cointribune.com/en/grayscales-etf-innovation-brings-staking-to-investors/

Historic Milestone: Grayscale ETF Introduces Staking Income Distribution

Grayscale has announced an unprecedented move in the United States crypto market: the direct distribution of income generated from Ethereum staking to its ETF shareholders. This innovation disrupts traditional finance structures and paves the way for a new generation of investment products combining cryptocurrency exposure with on-chain yield generation.

First Staking Distribution for U.S. Crypto ETF

Holders of the Grayscale Ethereum Trust ETF (ETHE) will receive $0.08 per share, following the conversion of staking rewards into dollars. This marks the first staking-related distribution for a spot crypto ETP listed in the United States.

The distribution applies to investors registered at the close of Monday, with payment scheduled for the following Tuesday. This operation follows the activation of staking for Grayscale’s Ethereum products, effective since October 6, 2025. Validation operations are ensured by institutional custodians and third-party validators, guaranteeing secure infrastructure compliant with market standards.

Key Details of the Announcement

• Product: Grayscale Ethereum Trust ETF (ETHE), listed in the United States
• Distribution Amount: $0.08 per share from staking rewards
• Payment Method: Rewards converted into dollars, not redistributed in Ether
• Infrastructure: Staking operated via third-party validators and institutional custodians
• Legal Framework: Funds operate outside the Investment Company Act of 1940, allowing greater flexibility to integrate on-chain mechanisms
• Market Impact: The ETHE ETF price rose 2% following the announcement

With this operation, Grayscale positions itself as the first player to remunerate investors based on on-chain staking, while establishing itself as an innovation hub at the intersection of traditional finance and blockchain technologies.

Accelerating the Race for Staking ETFs

This announcement could well accelerate a broader trend among major asset managers. Several major competitors are reportedly working to 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 via third-party providers
• A similar request was filed in February for the 21Shares Core Ethereum ETF
• BlackRock registered a staked Ethereum ETF in Delaware, marking a regulatory first step toward a comparable product

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

Market Positioning and Competitive Landscape

Grayscale manages $4.1 billion for ETHE and $1.5 billion for its Ethereum Mini Trust, making it second only to BlackRock’s ETHA at $11.1 billion. In a market where differentiation margins between ETFs are narrow, the ability to generate yield through staking could become a decisive criterion for both institutional and retail investors.

As Ethereum staking continues to surge, this first redistribution of staking income could set a precedent and accelerate the integration of decentralized mechanisms into listed financial markets, potentially redefining the contours of crypto financial products available to mainstream investors.