Ethereum News Today: Grayscale's Staking ETFs Outpace SEC as Rivals Wait in Regulatory Limbo

Grayscale Investments has become the first U.S. asset manager to introduce staking functionality to its Ethereum and Solana exchange-traded products (ETPs), marking a significant development in the cryptocurrency investment landscapeGrayscale Becomes First to Add Staking to US Spot Ethereum ETFs^[1]. The firm announced that its Ethereum Trust ETF (ETHE) and Ethereum Mini Trust ETF (ETH) now allow investors to earn staking rewards while maintaining exposure to the underlying assets. Additionally, staking has been activated for the Grayscale Solana Trust (GSOL), which trades over-the-counterGrayscale’s Ethereum ETFs Become First in US to Enable Staking^[3].

The move positions Grayscale as a pioneer in integrating staking into U.S.-listed spot crypto ETPs, offering investors a novel way to generate passive income without directly managing the assetsGrayscale Adds Staking to Ethereum and Solana Investment^[2]. By leveraging institutional custodians and a network of validator providers, Grayscale aims to secure the Ethereum and Solana blockchains while distributing staking rewards to investorsGrayscale debuts first Ethereum and Solana ETFs offering staking …^[4]. For ETHE and ETH, rewards will be paid directly to investors, whereas for the Ethereum Mini Trust and Solana Trust, the yields will be integrated into the funds' net asset value (NAV) to maintain tax efficiencyWhy Grayscale's First US Staking ETPs Are a Big Step For Crypto^[5].

The updated products collectively manage $8.25 billion in assets under management (AUM), with ETHE holding $4.82 billion, ETH with $3.31 billion, and GSOL with $122.5 millionGrayscale Adds Staking to Ethereum and Solana Investment^[2]. Grayscale's CEO, Peter Mintzberg, emphasized the strategic advantage of the firm's size and track record, which enable it to translate staking opportunities into long-term value for investorsGrayscale debuts first Ethereum and Solana ETFs offering staking …^[4]. The firm's Ethereum ETFs, now the first in the U.S. to offer staking, could attract further institutional inflows by enhancing yield potential compared to traditional ETFsGrayscale Becomes First to Add Staking to US Spot Ethereum ETFs^[1].

However, regulatory hurdles persist for other market participants. Competitors such as BlackRock and Fidelity are still awaiting SEC approval to launch similar staking-enabled ETFsGrayscale Becomes First to Add Staking to US Spot Ethereum ETFs^[1]. The SEC's cautious approach, compounded by the ongoing U.S. government shutdown, has delayed decisions on multiple crypto ETF applications. Grayscale's existing funds, including ETHE and ETH, operate outside the 1940 Investment Company Act, which may have expedited their staking rolloutGrayscale Becomes First to Add Staking to US Spot Ethereum ETFs^[1]. Meanwhile, the REX-Osprey Solana Staking ETF (SSK), a 1940 Act-compliant product, has already attracted $404 million in AUM since its July launchGrayscale Becomes First to Add Staking to US Spot Ethereum ETFs^[1].

The staking feature aligns with broader market trends emphasizing yield generation in crypto investments. On-chain data show that approximately 36 million ETH-30% of the total supply-is now staked, reducing liquid circulation and potentially supporting price stabilityWhy Grayscale's First US Staking ETPs Are a Big Step For Crypto^[5]. For Solana, the absence of minimum staking requirements and faster unstaking times compared to Ethereum make it an attractive option for ETFs seeking liquidity and operational efficiency. Analysts suggest that staking-enabled ETFs could redefine institutional access to crypto, offering a structural advantage over Bitcoin ETFs, which lack yield componentsWhy Grayscale's First US Staking ETPs Are a Big Step For Crypto^[5].

Grayscale's initiative has been met with cautious optimism. While Ethereum's staking yields hover around 3% and Solana's range between 5.5-7.5% APY, investors remain wary of regulatory uncertainties and network risks. Ethereum's withdrawal delays and Solana's historical reliability issues highlight the trade-offs between security and performance. Nonetheless, the integration of staking into ETPs represents a pivotal step toward mainstream adoption, bridging the gap between traditional finance and decentralized networksWhy Grayscale's First US Staking ETPs Are a Big Step For Crypto^[5].