On October 6, 2025, Grayscale Investments announced a landmark development for the digital asset space, becoming the first firm to enable staking for U.S.-listed spot crypto exchange-traded products (ETPs) for Ethereum and Solana. This move bridges the world of traditional finance with the core yield-generating mechanics of blockchain networks.
A New Era for Institutional Crypto Investment
This strategic upgrade applies to three of Grayscale’s products: the Grayscale Ethereum Trust ETF (ETHE), the Grayscale Ethereum Mini Trust ETF (ETH), and the Grayscale Solana Trust (GSOL). By activating staking, Grayscale has transformed these funds from simple price-trackers into assets that can generate passive income, all within the familiar structure of a traditional brokerage account.
For investors, this means access to the potential rewards of proof-of-stake networks without the technical complexities of managing validators or private keys. Grayscale handles the operational side through institutional custodians and a diversified network of validator providers, aiming to reduce risk and ensure network security. The firm’s CEO, Peter Mintzberg, described this “first mover innovation” as a key part of their mission to create tangible value for investors.
How Staking Rewards Work in the Funds
Grayscale has implemented two distinct methods for distributing staking rewards to shareholders, reflecting the different structures of its products:
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Direct Distributions and NAV Accrual: For the flagship Grayscale Ethereum Trust ETF (ETHE), the staking rewards are paid directly to investors. In contrast, the newer Grayscale Ethereum Mini Trust ETF (ETH) and the Grayscale Solana Trust (GSOL) incorporate the earned rewards directly into the fund’s Net Asset Value (NAV). This approach gradually increases the value of each share over time.
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Capturing Early Demand: Demonstrating immediate institutional interest, Grayscale staked a significant amount of Ether shortly after the launch. Blockchain data confirmed the staking of 32,000 ETH, valued at approximately $150 million, showcasing strong early adoption for these new yield-bearing products.
Navigating Operational and Regulatory Frontiers
The launch of these staking ETPs is a significant step, but it comes with its own set of considerations and a evolving regulatory landscape.
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A Maturing Regulatory Environment: This development signals a notable shift in the U.S. regulatory approach. It comes years after the SEC’s 2023 action against Kraken’s staking service, which had created a climate of uncertainty. Grayscale’s successful launch of these products indicates a path forward for regulated staking services within existing securities laws.
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Intensifying Market Competition: Grayscale’s first-mover advantage is set to face competition. Other major asset managers, including BlackRock and 21Shares, have filed for their own Ether staking ETPs, with key SEC decision deadlines looming in October 2025. Furthermore, the REX-Osprey Solana Staking ETF launched in July 2025, indicating a growing market for these products.
In summary, Grayscale’s introduction of staking for its spot Ethereum and Solana ETPs represents a pivotal moment, offering a regulated bridge for traditional investors to access the foundational yields of blockchain networks. The success of these products will hinge on investor adoption, the management of operational risks, and the unfolding regulatory and competitive landscape.
