21shares first distributes Ethereum staking rewards: a new change in the ETF competitive landscape

Source: Yellow Original Title: What does the first staking distribution of 21shares mean for the competition among Ethereum ETFs

Original Link: 21shares announced that it will distribute 0.010378 $ per share in Ethereum staking rewards to holders of its TETH ETF.

The distribution follows the innovative staking payout from Grayscale earlier this week.

The payout is scheduled for January 9th to shareholders registered as of January 8th.

What happened

21shares will distribute to TETH shareholders the staking rewards generated by the trust’s Ethereum holdings.

The FalconX subsidiary manages $34 million in assets, with $25 million in net inflows since its launch.

Grayscale distributed 0.083178 $ per share to its Ethereum ETF holders on January 6th, marking the first crypto spot ETP in the U.S. to transfer staking benefits to investors.

21shares stakes a portion of its Ethereum holdings to generate rewards but faces operational and slashing risks.

The fund launched its first physically-backed cryptocurrency ETP in 2018.

Why it matters

Ethereum staking distributions are becoming a competitive differentiator among ETF providers.

REX-Osprey launched in September 2025 the first ETF with staking registered under the 1940 Act.

A major asset manager applied in December 2025 for an Ethereum staking ETF, planning to stake between 70% and 90% of holdings, pending regulatory approval.

This trend allows traditional investors to earn staking yields without directly managing cryptocurrency wallets or validator infrastructure.

Staking introduces additional risks, including lock-up periods, network disruptions, and penalties to validators that could reduce returns.