Ethereum News Today: Grayscale Addresses Passive Yield Gap with Staking-Enabled ETPs

Grayscale Investments has become the first U.S. provider to introduce staking functionality to its Ethereum and Solana-focused exchange-traded products (ETPs), marking a significant development in the crypto investment landscape. The firm announced that its Ethereum Trust ETF (ETHE) and Ethereum Mini Trust ETF (ETH) now enable investors to earn staking rewards while maintaining exposure to Ethereum's spot price. Additionally, the Grayscale Solana Trust (GSOL), currently traded over-the-counter, has also activated staking, offering investors access to Solana (SOL) staking through traditional brokerage accountsGrayscale Launches First Staking Spot Crypto ETPs in U.S.^[1].

The move expands the utility of Grayscale's ETPs, which are not registered under the Investment Company Act of 1940 and thus operate outside the regulatory framework of traditional ETFs. ETHE and ETH, which hold digital assets but are not direct investments in them, now allow passive staking through institutional custodians and a diversified network of validator providers. This approach secures the underlying blockchain networks while aligning with the funds' core objectives of providing spot exposure to Ethereum and SolanaGrayscale’s Ethereum ETFs Become First in US to Enable Staking^[2].

Grayscale's CEO, Peter Mintzberg, emphasized that the initiative reflects the firm's commitment to innovation. "Staking in our spot Ethereum and Solana funds is exactly the kind of first-mover innovation Grayscale was built to deliver," he stated, noting that the firm's $35 billion in assets under management positions it to scale such opportunities for investorsGrayscale Adds Staking to Ethereum and Solana Investment^[3]. The activation of staking for ETHE, ETH, and GSOL follows a strategic report titled Staking 101: Secure the Blockchain, Earn Rewards, which educates investors on the mechanics and benefits of stakingGrayscale Launches First Staking Spot Crypto ETPs in U.S.^[1].

The firm's approach to distributing staking rewards includes direct payouts to ETHE investors and integration into the share prices of ETH and GSOL. This distinction aims to balance immediate returns with long-term value accrual for different product structuresGrayscale’s Ethereum ETFs Become First in US to Enable Staking^[2]. Grayscale's Ethereum Trust ETF, with $4.82 billion in net assets, and its Ethereum Mini Trust ETF, holding $3.31 billion, now offer a competitive edge in the Ethereum ETF market, which has seen slower adoption compared to Bitcoin counterpartsGrayscale Ethereum ETFs Are First in US to Add Staking^[4].

Grayscale's staking feature was launched amid a broader surge in Ethereum's performance, with the asset surging 156% over six months and reaching a record high near $5,000 in September. The firm's timing aligns with growing institutional interest in Ethereum's post-merge proof-of-stake model, which reduces energy consumption compared to Bitcoin's proof-of-work mechanismGrayscale Ethereum ETFs Are First in US to Add Staking^[4]. Meanwhile, GSOL, with $122.5 million in assets, could become the first listed Solana ETP with staking if regulatory approval for its exchange listing is securedGrayscale Launches First Staking Spot Crypto ETPs in U.S.^[5].

The firm has signaled plans to extend staking to additional products as the digital asset ecosystem evolves. This expansion aims to further differentiate Grayscale from competitors like BlackRock, whose Bitcoin and Ethereum ETFs dominate the market. By integrating staking, Grayscale addresses a key limitation of existing crypto ETFs-passive yield generation-potentially enhancing their appeal to both retail and institutional investorsGrayscale’s Ethereum ETFs Become First in US to Enable Staking^[2].

However, the firm acknowledges the risks inherent to its offerings. ETHE and ETH, while providing exposure to Ethereum, are not direct investments in the asset and carry the risk of principal loss. Similarly, GSOL's performance is tied to Solana's nascent technology, which may face functional challenges affecting its valueGrayscale Launches First Staking Spot Crypto ETPs in U.S.^[1]. Grayscale's decision to proceed with staking despite the U.S. government shutdown, which delayed SEC approvals for new products, underscores its regulatory agility and confidence in its product structureGrayscale’s Ethereum ETFs Become First in US to Enable Staking^[2].