Ethereum News Today: Grayscale ETPs Enable Staking Rewards Without Sacrificing Exposure

Grayscale Investments has become the first U.S. firm to enable staking for its spot Ethereum and Solana exchange-traded products (ETPs), marking a significant innovation in digital asset investing. The Grayscale Ethereum Trust ETF (ETHE), Ethereum Mini Trust ETF (ETH), and Solana Trust (GSOL) now allow investors to earn staking rewards while maintaining exposure to the underlying cryptocurrencies. ETHE and ETH, which are not registered under the Investment Company Act of 1940, hold $4.82 billion and $3.31 billion in net assets respectively, while GSOL, currently traded over-the-counter, manages $122.5 million in assetsGrayscale Launches First Staking Spot Crypto ETPs in U.S.^[1]. This move expands institutional-grade access to staking, a feature central to proof-of-stake blockchains like Ethereum and Solana, enabling investors to participate in network security without directly managing the assetsGrayscale Adds Staking to Ethereum and Solana Investment^[2].

Grayscale's staking mechanism operates through institutional custodians and a diversified network of validator providers, aiming to secure the protocols while aligning with the funds' core objectives of providing spot exposure to ETH and SOL. The firm emphasizes passive staking, which it claims supports long-term network resilience and aligns with investor education initiatives, such as its Staking 101 reportGrayscale Launches First Staking Spot Crypto ETPs in U.S.^[1]. Peter Mintzberg, Grayscale's CEO, described the feature as a "first mover innovation," leveraging the firm's $35 billion in assets under management (AUM) to translate staking opportunities into value for investorsGrayscale debuts first Ethereum and Solana ETFs offering staking^[3]. The firm plans to extend staking to additional products as the digital asset ecosystem evolvesGrayscale enables staking for its spot Ethereum ETFs in the US^[4].

Regulatory distinctions between the ETPs highlight the current landscape. ETHE and ETH, though not 40 Act-registered, are marketed as direct exposure to Ether, while GSOL, pending regulatory approval to convert to an exchange-traded product, could become one of the first spot Solana ETPs with staking. The firm has filed for this conversion, noting that pending approval would align GSOL with the regulatory framework used for Ethereum ETFs under the Securities Act of 1933Grayscale enables staking for its spot Ethereum ETFs in the US^[4]. This contrasts with REX-Osprey's SSK fund, which uses a 40 Act workaround to offer staked SOL exposureGrayscale enables staking for its spot Ethereum ETFs in the US^[4].

The launch underscores Grayscale's dominance in the digital asset ETF market, with its Ethereum and Solana products collectively managing $8.25 billion in AUMGrayscale Adds Staking to Ethereum and Solana Investment^[2]. Analysts have linked recent crypto rallies, particularly for Bitcoin and Ethereum, to surging ETF inflows, with U.S. spot Bitcoin ETFs alone absorbing over $3.24 billion in weekly inflows as of October 2025. While Grayscale's staking feature does not directly impact Bitcoin ETFs, it reflects broader institutional adoption trends, including increased participation from financial advisors and asset managers.

The move also positions Grayscale to capitalize on the growing demand for yield-generating crypto investments. By enabling staking in its ETPs, the firm addresses a key limitation of traditional ETF structures, which typically do not offer staking rewards. This innovation could attract investors seeking both capital appreciation and passive income, particularly as macroeconomic factors like inflation and potential Federal Reserve rate cuts drive allocations into Bitcoin and Ethereum. However, the risks remain significant, with GSOL's speculative nature and the nascent stage of the Solana protocol noted as potential challengesGrayscale Launches First Staking Spot Crypto ETPs in U.S.^[1].

Grayscale's initiative aligns with broader regulatory and market shifts in 2025, including the U.S. government's pro-crypto policies and the European Central Bank's accelerated timeline for a digital euro. While the ECB's digital euro project, slated for October 2025, focuses on central bank digital currency (CBDC) adoptionBitcoin Eyes ATH as ETF Inflows Surge^[6], Grayscale's ETPs represent a parallel evolution in institutional access to decentralized networks. The firm's ability to integrate staking into its existing product suite underscores its role as a bridge between traditional finance and the crypto ecosystemGrayscale enables staking for its spot Ethereum ETFs in the US^[4].