Ethereum News Today: Grayscale's Staking ETPs Bridge Traditional Finance and Blockchain Rewards

Grayscale Investments has launched the first U.S.-listed spot crypto exchange-traded products (ETPs) to enable staking, marking a significant milestone in the digital asset investment landscape. The Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH) now allow investors to earn passive rewards while maintaining exposure to Ether's spot price. Additionally, staking has been activated for the Grayscale Solana Trust (GSOL), which remains quoted on the OTCQX market but is expected to transition to a staking-enabled ETP pending regulatory approval Grayscale Launches First Staking Spot Crypto ETPs in U.S.^[1]. This innovation positions Grayscale as the leading digital asset-focused ETF issuer by assets under management (AUM), with approximately $35 billion in assets as of September 2025 FWP - SEC.gov^[2].

The staking feature operates through institutional custodians and a diversified network of validator providers, ensuring passive participation in securing the Ethereum and Solana networks. This approach aligns with Grayscale's commitment to investor education, including the release of a report titled Staking 101: Secure the Blockchain, Earn Rewards, which explains the mechanics and benefits of staking. The company emphasized that staking rewards will be distributed to investors, either directly for ETHE or integrated into the share prices of ETH and GSOL Grayscale’s Ethereum ETFs Become First in US to Enable Staking^[3]. Peter Mintzberg, Grayscale's CEO, highlighted the move as a testament to the firm's ability to transform opportunities like staking into tangible value for investors Grayscale Ethereum ETFs Are First in US to Add Staking^[4].

Regulatory nuances remain a key consideration. ETHE and ETH are not registered under the Investment Company Act of 1940, distinguishing them from traditional ETFs and mutual funds. This regulatory framework means they are not subject to the same protections and oversight, underscoring the risks inherent to such investments. GSOL, while not yet an ETP, operates under a different regulatory structure. Grayscale's decision to bypass the 1940 Act's requirements has allowed it to accelerate staking capabilities, a contrast to competitors like BlackRock, which await SEC approval for similar features Grayscale Launches First Staking Spot Crypto ETPs in U.S.^[1].

Market dynamics have shifted in favor of staking-enabled products, particularly as Ethereum and Solana outperform Bitcoin in recent months. Ethereum's price surged 156% over six months, outpacing Bitcoin's 50% gain, while Solana's 25% price increase in late 2025 reflects growing institutional interest. The activation of staking is expected to enhance demand for these assets, as investors seek yield alongside price appreciation. CoinShares reported $5.95 billion in crypto ETF inflows for the week ending October 6, 2025, with Ethereum funds attracting $1.48 billion Global digital assets: September ETF and ETP review^[5].

Grayscale plans to expand staking to additional products as the digital asset ecosystem evolves. The firm's approach aligns with broader industry trends, including the rise of institutional-grade crypto investments and the integration of blockchain technology into traditional finance. However, challenges such as centralization risks-where large ETF providers could accumulate significant staking power-remain under scrutiny. Vitalik Buterin and other Ethereum developers have previously flagged proof-of-stake centralization as a potential threat to decentralization .

The launch of staking-enabled ETPs underscores Grayscale's role in bridging traditional finance and decentralized networks. By offering regulated access to staking rewards, the firm aims to attract a broader investor base while addressing liquidity concerns through mechanisms like its "Liquidity Sleeve." As the market matures, the success of these products will hinge on regulatory developments, competitive dynamics, and the ability to balance yield generation with decentralization principles .