Grayscale's Ethereum Staking ETF Distributes First US Staking Rewards

Grayscale’s Ethereum Staking ETF has become the first U.S.-listed spot crypto exchange-traded product (ETP) to distribute staking rewards to investors. Shareholders of the Grayscale Ethereum Staking ETF (ETHE) will receive $0.083178 per share, marking a significant milestone in the evolution of digital asset investment vehicles according to reports.

The distribution reflects proceeds from staking rewards earned between October 6, 2025, and December 31, 2025. The payout is scheduled for January 6, 2026, based on share ownership as of January 5, 2026 as data shows.

This development signals Grayscale’s expansion of staking capabilities to its Ethereum products, making ETHE and the Grayscale Ethereum Staking Mini ETF the first U.S.-listed spot crypto ETPs to offer exposure to Ether staking according to Marketscreener.

Why Did This Happen?

Grayscale activated staking for its Ethereum products on October 6, 2025, using institutional custodians and third-party validator providers according to Live Bitcoin News. The company emphasized that this move aligns with its strategy to bring the economic benefits of digital assets to investors in a structured, regulated format.

The staking rewards are converted to cash and distributed to investors in dollars rather than in Ether (ETH). This approach ensures that investors receive direct financial benefits without needing to manage the underlying crypto assets as reported by Cryptopolitan.

How Did Markets React?

The ETHE fund was up around 2% in early trading on January 6, 2026, according to Yahoo Finance data. This positive response highlights the market’s recognition of Grayscale’s innovation and the broader potential of staking-enabled ETPs.

The distribution also underscores the growing institutional confidence in crypto as an asset class. With U.S. spot crypto ETFs surpassing $2 trillion in cumulative trading volume, the market has shown sustained demand for regulated crypto investment products as Live Bitcoin News reports.

What Are Analysts Watching Next?

Analysts are closely monitoring how this distribution affects the broader Ethereum ETP market. While Grayscale is currently the only U.S. fund issuing payouts linked to Ether staking, several major asset managers are awaiting regulatory approval from the SEC for their staking-enabled Ethereum ETFs according to Bitcoin World.

BlackRock, for example, registered a staked Ethereum ETF in Delaware as part of its strategy to expand its product offerings in the digital asset space as Global Newswire reports. The approval and launch of these products could significantly alter the competitive landscape and further normalize staking as an income-generating feature for crypto investors.

The Grayscale Ethereum Staking ETF operates outside the Investment Company Act of 1940, which governs most U.S. ETFs. This regulatory distinction allows for staking but also means the fund is subject to different protections and oversight compared to traditional ETFs according to Cointelegraph.

Investors should be aware of the risks associated with staking, including illiquidity during the staking period, exposure to market volatility, and potential security vulnerabilities such as validator failures or network attacks as reported by Global Newswire.

Looking ahead, the success of this distribution may encourage other ETP providers to explore staking capabilities for their crypto funds. With the SEC’s new generic listing standards accelerating approval timelines, the market could see an influx of staking-enabled products in the coming months according to Investing.com.

The move also highlights the increasing role of crypto in institutional portfolios. As more investors seek diversified, regulated exposure to digital assets, the Ethereum and broader crypto ETF markets are likely to see continued growth and innovation.