Grayscale Investments has become the first American asset manager to integrate staking into spot crypto exchange-traded products, a step that could reshape how traditional investors earn yield on digital assets.
In an Oct. 6 statement, the firm announced that staking is now available for its Grayscale Ethereum Mini Trust ETF (ETH) and Grayscale Ethereum Trust ETF (ETHE).
The move allows holders of both products to earn staking rewards directly within their ETFs, either as reinvested gains or as cash payouts.
Grayscale said the dual-option model was designed to attract investors with different goals, including long-term compounding for those who prefer growth and direct income for those seeking liquidity.
The firm also enabled staking for its Grayscale Solana Trust (GSOL). Once GSOL receives regulatory approval to uplist as a spot exchange-traded product, it would rank among the first Solana-based ETPs in the United States to support staking.
Regulatory environment
Crypto staking allows participants to lock their tokens to validate transactions and earn rewards. However, regulatory uncertainty kept US institutions from fully participating for years.
Under former SEC Chair Gary Gensler, the agency claimed some staking services resembled unregistered securities offerings, a stance that led to enforcement actions against firms such as Kraken.
As a result, ETF issuers reacted by removing staking options from their products to minimize compliance risks.
That position, however, has eased. Over the past year, the SEC clarified that liquid staking does not automatically constitute a securities offering when properly structured.
The shift, paired with a friendlier tone toward crypto under the Trump administration, has encouraged asset managers like Grayscale to reintroduce staking within their regulated investment structures.
Market impact
Grayscale’s move could reshape competition in the Ethereum ETF market, where investor interest has surged.
Staking yields, which average around 3.2%, may enable issuers to offset operating costs by staking a portion of their assets, potentially reducing management fees that can reach 2.5%. These lower fees could make ETH ETFs more competitive and increase adoption among institutional clients.
Additionally, this shift could reshape Ethereum’s staking ecosystem by channeling more institutional capital into staking pools and liquidity platforms. Some issuers are exploring liquid staking solutions, such as Lido’s stETH, to enhance redemption flexibility.
As of press time, about 36 million ETH, roughly 30% of Ethereum’s total supply, is staked, with Lido controlling 23% of that market.
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