Bitmine Ethereum Staking Surpasses 1 Million ETH, Reaching 1.032 Million ETH

Bitmine Immersion Technologies has increased its Ethereum staking to 1.032 million ETH, valued at around $3.2 billion, according to on-chain analytics. This represents a significant portion of the company's total ETH holdings, which now exceed 4.14 million ETH. The staking activity is part of Bitmine's broader Ethereum-focused strategy, with plans to launch its Made in America Validator Network (MAVAN) in early 2026.

Grayscale Investments also made headlines as the first U.S.-listed spot crypto product to distribute Ethereum staking rewards. Shareholders in the Grayscale Ethereum Staking ETF (ETHE) received a payout of $0.083178 per share, covering rewards earned from October 6, 2025, to December 31, 2025. This move signals a shift in how crypto assets are treated in regulated financial products, as staking income is now being integrated into publicly traded vehicles.

Morgan Stanley added to the growing momentum by filing with the U.S. Securities and Exchange Commission (SEC) to launch a spot Ether exchange-traded fund (ETF). The filing indicates the firm's intent to stake a portion of its Ethereum holdings for additional yield, joining other major players in the crypto ETF space.

Why the Move Happened

Ethereum staking has evolved from a speculative tool to a core feature of the network. With Ethereum's staking queues nearly cleared, the network is now processing validator entries and exits in near real time. This shift means that staking is becoming a steady-state activity rather than a temporary liquidity squeeze. The reduced staking reward rate—now around 3%— reflects a more mature market, where the incentive to stake is stable rather than speculative.

Bitmine's continued staking of ETH is part of its long-term treasury strategy. By locking up a large portion of its ETH holdings, the company aims to generate yield while signaling its confidence in Ethereum's future. Grayscale and Morgan Stanley are also betting on Ethereum's potential to deliver structured returns, mirroring how traditional financial products generate income through interest or dividends.

How Markets Responded

The market has shown mixed reactions to these developments. Ethereum's price remains below its historical highs, with staking rewards and ETF activity not yet translating into a sustained price increase. Despite this, U.S. spot Ether ETFs have seen inflows, indicating ongoing institutional and retail interest. In early January 2026, ETFs recorded $174.4 million in net inflows on their first trading day of the year.

Grayscale's staking reward payout was particularly notable for its implications on market structure. This is the first time a U.S.-listed crypto product has distributed income from on-chain staking, setting a precedent for future products. Meanwhile, Morgan Stanley's filing signals a broader acceptance of Ethereum as a financial asset within traditional investment vehicles.

What Analysts Are Watching

Analysts are closely monitoring how staking activity affects Ethereum's supply dynamics and overall market structure. With over 30% of ETH staked, the asset is behaving more like a yield-bearing position than a locked-up asset. This shift could influence trading behavior, as investors may now view Ethereum as a source of passive income rather than a speculative asset.

Another key area of focus is Ethereum's dominance in decentralized finance (DeFi). While the network still holds 58% of total DeFi TVL, incremental growth is being captured by ecosystems like Solana and Base. This fragmentation raises questions about Ethereum's ability to translate increased usage into higher fees and stronger price support.

Regulatory developments are also a factor. The potential approval of yield-bearing Ethereum products by U.S. regulators could further integrate staking into mainstream financial markets. This would expand the pool of investors participating in Ethereum staking and could lead to higher demand for ETH.