Ethereum News Today: Grayscale's Staking ETPs Redefine Crypto as Yield-Generating Asset for Institutions

Grayscale Investments has launched the first U.S.-listed spot crypto exchange-traded products (ETPs) to enable staking for Ethereum and Solana, marking a significant expansion of institutional-grade access to yield-generating digital assets. The firm activated staking for its Ethereum Trust ETF (ETHE), Ethereum Mini Trust ETF (ETH), and Solana Trust (GSOL), allowing investors to earn staking rewards while maintaining exposure to Ether and Solana's price movements. These products, which collectively manage over $8.25 billion in assets under management (AUM), are now positioned to generate passive income for investors through institutional custodians and validator networkstitle1^[1].

The staking feature operates by delegating assets to professional validators, such as Kiln and Figment, which secure the Ethereum and Solana blockchains. Rewards are added to the funds' net asset value (NAV) rather than distributed separately, preserving tax efficiency and simplifying accounting for investorstitle4^[4]. Grayscale's ETHE holds over 1 million ETH, while ETH offers a smaller, diversified exposure. The Solana Trust (GSOL), listed on OTCQX, currently holds $122.5 million in AUM and is pending regulatory approval for uplisting to a traditional exchangetitle3^[3]. If approved, GSOL would become one of the first Solana spot ETPs with staking capabilities in the U.S. market.

The move reflects a broader shift in institutional adoption of staking-enabled products. On-chain data indicates that nearly 36 million ETH-30% of the total supply-is now staked, reducing liquid supply and potentially supporting price stabilitytitle4^[4]. Ethereum's staking yield currently averages ~3%, while Solana's staking rewards reach ~7%, offering investors a structural advantage over non-yield-bearing assets like Bitcointitle4^[4]. Analysts suggest these yields could attract traditional investors seeking diversified income streams, particularly as Ethereum's withdrawal delays limit direct staking for large holdingstitle4^[4].

Grayscale's CEO, Peter Mintzberg, emphasized the firm's role in translating blockchain innovation into regulated financial products. "Staking in our spot Ethereum and Solana funds is exactly the kind of first-mover innovation Grayscale was built to deliver," he stated, noting the firm's $35 billion AUM and decade-long track record in digital asset investingtitle5^[5]. The company also released an educational report, Staking 101, to clarify the mechanics and risks of staking, aligning with its focus on transparency and investor protectiontitle5^[5].

The launch follows regulatory discussions with the U.S. Securities and Exchange Commission (SEC), where Grayscale addressed concerns over yield clarity and asset custody. The firm's staking framework avoids direct network risks by leveraging custodians like Coinbase Custody and BitGo to manage validator participationtitle2^[2]. This approach ensures compliance with existing fund structures, as ETHE and ETH are not registered under the Investment Company Act of 1940, operating outside mutual fund regulationstitle5^[5].

Market observers anticipate these ETPs could redefine crypto's role in institutional portfolios. Ethereum's tightening supply base, driven by staking participation, has reduced liquid circulation, while Solana's high transaction throughput and growing DeFi ecosystem position it as a viable alternative to Bitcoin for yield-focused strategiestitle4^[4]. Grayscale plans to expand staking to additional products, further integrating blockchain utility with traditional financial infrastructuretitle2^[2].