Institutional Adoption of Staking-Enabled Crypto ETFs in a Regulated Framework: How U.S. Treasury Guidance Boosts Capital Inflows into Ethereum and Solana

The U.S. Treasury and IRS's November 2025 safe harbor guidance for staking-enabled crypto exchange-traded products (ETPs) has unlocked a new era for institutional investors. By providing a regulatory framework that allows ETFs to stake proof-of-stake assets like Ethereum (ETH) and Solana (SOL) while distributing staking rewards, the guidance addresses long-standing legal uncertainties and operational barriers. This development is accelerating capital inflows into these blockchains, with Solana ETFs already outpacing Bitcoin and Ethereum in investor demand.

A Regulatory Framework for Staking

The safe harbor, outlined in Revenue Procedure 2025-31, enables ETPs to stake digital assets without violating tax or securities rules, provided they meet strict criteria: holding only one type of proof-of-stake asset, using qualified custodians (e.g., Coinbase Custody, BitGo), maintaining liquidity for redemptions, and outsourcing staking to independent providers, according to a decrypt.co report. Treasury Secretary Scott Bessent emphasized that the move aims to "increase investor benefits, boost innovation, and keep America the global leader in digital asset and blockchain technology," according to a cryptotimes.io article.

This clarity transforms staking from a speculative activity into a regulated, yield-generating tool for institutional portfolios. For example, Ethereum ETFs can now offer staking yields of 3–5% annually, while Solana ETFs, with their higher network rewards, project 5–7%, according to a coinotag.com analysis. The guidance also aligns with the SEC's September 2025 approval of generic listing standards for crypto ETFs, creating a cohesive regulatory environment, as noted in a thecryptobasic.com post.

Solana ETFs: A Case Study in Rapid Adoption

Solana's staking ETFs have become a focal point for institutional capital. In the first ten days of October 2025, U.S.-listed Solana ETFs attracted $342 million in investments, with total assets under management (AUM) reaching $598 million by November 10, according to a finway.com.ua report. On that date alone, Solana ETFs saw $6.78 million in net inflows, outpacing Bitcoin and Ethereum ETFs, which recorded outflows of $191.6 million and $98.2 million, respectively, as reported by a cryptopolitan.com article.

The Bitwise Solana ETF (BSOL) and Grayscale Solana Trust (GSOL) led this surge. BSOL added $5.92 million in a single day, while GSOL contributed $854,480, according to a cryptotimes.io analysis. Grayscale even temporarily cut fees for its Solana Trust to boost adoption, staking all SOL holdings at an average 7% gross yield, as reported by a cryptopolitan.com post. These figures highlight a shift in investor preferences toward high-yield proof-of-stake blockchains, particularly as traditional ETFs face outflows.

Ethereum's Cautious Momentum

While Ethereum ETFs have also benefited from the guidance, their inflows lag behind Solana's. Ethereum's staking yield of 3–5% is lower than Solana's, but the network's first-mover advantage and larger market cap (over $100 billion) still attract institutional interest, according to a coinotag.com analysis. However, Ethereum ETFs have seen outflows as investors rotate into higher-yielding altcoins, as noted in a cryptotimes.io analysis.

The regulatory clarity has, however, enabled Ethereum ETFs to integrate staking into their structures. For instance, existing ETFs now have a nine-month window to amend trust agreements to incorporate staking, with a full rollout expected by mid-2026, according to a cryptotimes.io article. This timeline suggests Ethereum's institutional adoption will accelerate as staking becomes a standard feature.

Institutional Participation and Market Implications

The guidance has already spurred major asset managers to disclose stakes in Solana-linked ETFs. Rothschild Investment LLC and PNC Financial Services, for example, have invested in Solana ETFs, signaling confidence in the asset class, according to a cryptopolitan.com report. Industry leaders like Bill Hughes of Consensys have praised the framework for removing legal barriers that previously discouraged fund sponsors and custodians from offering staking yields, as noted in a decrypt.co report.

From a market perspective, the safe harbor is expected to drive billions in capital into proof-of-stake blockchains. Solana's AUM growth and Ethereum's gradual integration of staking capabilities underscore a broader trend: institutional investors are prioritizing yield-generating digital assets within regulated frameworks.

Conclusion

The U.S. Treasury's safe harbor guidance has redefined the landscape for staking-enabled crypto ETFs. By providing a clear regulatory path for staking, it has unlocked institutional capital flows into Ethereum and Solana, with Solana's higher yields and rapid ETF adoption currently outpacing Ethereum's. As implementation progresses, the framework is likely to cement the U.S. as a global leader in blockchain innovation, offering investors a compliant, high-yield alternative to traditional assets.