Grayscale Ethereum ETFs Are First in US to Add Staking

Grayscale has introduced staking functionality to its Ethereum ETFs in the United States, allowing investors to earn ETH staking rewards for the first time. This feature is now available for the Ethereum Trust ETF (ETHE) and the Ethereum Mini Trust ETF (ETH), which have assets totaling $4.82 billion. Grayscale will utilize institutional custodians like Coinbase and a network of validator providers to handle the staking process. The addition of staking is significant as it enhances the appeal of Ethereum funds, which have so far mainly benefitted from price gains. Ethereum transitioned to a proof-of-stake model in 2022, allowing validators to earn rewards for securing the network. Grayscale's products were among the first of their kind and have been critical in shaping institutional interest. The lack of staking rewards had been a barrier to investor adoption of Ethereum ETFs since their launch in mid-2024. With Ethereum's recent performance outpacing Bitcoin, this move may help Grayscale compete against dominant players like BlackRock in the ETF market.

Source 🔗