Ethereum News Today: Grayscale's Staking ETPs Break New Ground Amid SEC Scrutiny

Grayscale Investments has announced a groundbreaking development in the U.S. digital asset market, with its Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH) now supporting staking. This marks the first instance of U.S.-listed spot crypto exchange-traded products (ETPs) enabling investors to stake their holdings, a move that introduces new earning opportunities through blockchain network participation. The staking feature, which allows investors to lock up Ether (ETH) to secure the Ethereum network and earn rewards, is part of Grayscale's broader strategy to enhance the utility of its digital asset productsGrayscale Launches First Staking Spot Crypto ETPs in U.S.^[1].

The initiative extends to Grayscale's Solana Trust (GSOL), which has also activated staking pending regulatory approval to uplist as an exchange-traded product (ETP). If approved, GSOL would become one of the first spot Solana ETPs with staking capabilities. Grayscale emphasizes that staking aligns with its core objective of providing exposure to the long-term value accrual of blockchain networks while maintaining the funds' focus on direct exposure to Ethereum and Solana. Peter Mintzberg, Grayscale's CEO, stated that the innovation reflects the firm's commitment to leveraging its institutional-grade infrastructure to deliver tangible value for investorsGrayscale Launches First Staking Spot Crypto ETPs in U.S.^[1].

The ETHE and ETH ETFs, which are not registered under the Investment Company Act of 1940, operate as unregistered ETPs. This regulatory distinction means they are not subject to the same oversight as traditional ETFs, but Grayscale highlights that the funds are designed to reflect the spot price of Ether, less expenses. Investors, however, should note that the funds do not provide direct ownership of digital assets, and their performance is subject to market risks, including potential loss of principal. The activation of staking is intended to complement these objectives by allowing investors to earn rewards without sacrificing liquidityGrayscale Launches First Staking Spot Crypto ETPs in U.S.^[1].

Grayscale's approach to staking involves institutional custodians and a network of validator providers to secure the Ethereum and Solana protocols. The company has also prioritized investor education, releasing a report titled Staking 101: Secure the Blockchain, Earn Rewards to explain the mechanics and benefits of staking. This educational effort underscores Grayscale's focus on transparency, a key differentiator in a market where many staking opportunities remain opaque or inaccessible to retail investorsGrayscale Launches First Staking Spot Crypto ETPs in U.S.^[1].

The SEC's regulatory stance remains a critical factor in the development of staking-enabled products. In April 2025, the agency delayed its decision on approving staking for Grayscale's Ethereum ETFs, pushing the final deadline to June 1SEC Delays Staking Decision for Grayscale ETH ETFs^[3]. This delay highlights the ongoing regulatory scrutiny of crypto-ETFs and the broader debate over the classification of digital assets. Despite this, the SEC has approved options trading for multiple spot Ether ETFs, signaling cautious progress in the sector. Grayscale's staking initiative, however, remains pending regulatory clearance, with the firm noting that the final approval for GSOL's uplisting as an ETP is still pendingGrayscale Launches First Staking Spot Crypto ETPs in U.S.^[1].

The market context for this innovation is shaped by the growing demand for yield-generating crypto investments. Annual staking yields on platforms like Coinbase and Kraken range from 2% to 7%, offering a compelling alternative to traditional asset classes. Ether ETFs, including those from Grayscale and competitors like BlackRock, have attracted $2.28 billion in net inflows since their launch in 2024, although they trail Bitcoin ETFs, which have drawn over $35 billion. The activation of staking in ETHE and ETH positions Grayscale to capture a larger share of this demand, particularly among investors seeking to balance exposure to digital assets with passive incomeSEC Delays Staking Decision for Grayscale ETH ETFs^[3].

Grayscale's move reflects its position as the largest digital asset-focused investment platform by assets under management (AUM), with $35 billion as of September 30, 2025. The firm's scale and institutional-grade custodial infrastructure are key advantages in the competitive ETF landscape, where cost efficiency and regulatory compliance are paramount. While newer entrants like BlackRock's ETHA and Fidelity's FETH offer lower fees, Grayscale's established brand and liquidity in its Ethereum products remain significant competitive assets.