Ethereum News Today: Grayscale's Staking Move Bridges Yield Gap Between Ethereum and Bitcoin ETFs

Grayscale Investments has become the first U.S. firm to introduce staking functionality to spot Ethereum exchange-traded products (ETPs), marking a significant development in the digital asset investment landscape. The firm announced that its Ethereum Trust ETF (ETHE) and Ethereum Mini Trust ETF (ETH) now allow investors to earn staking rewards without directly holding Ether (ETH). Grayscale also activated staking for its Solana Trust (GSOL), which is pending regulatory approval to transition to an exchange-traded product. The move is expected to enhance investor returns by aligning with Ethereum's proof-of-stake consensus mechanism, where validators secure the network in exchange for token rewards. Grayscale's ETHE and ETH collectively manage approximately $8.13 billion in assets under management, while GSOL holds $122.5 millionGrayscale Launches First Staking Spot Crypto ETPs in U.S.^[1]Grayscale Adds Staking to Ethereum and Solana Investment^[2].

The staking initiative leverages institutional custodians and a diversified network of validator providers to passively secure the Ethereum and Solana protocols. By participating in staking, Grayscale's funds contribute to network resilience while generating yield for investors. The firm emphasized that staking rewards will be distributed to ETHE investors directly, whereas ETH and GSOL will reflect returns through price appreciation. This distinction underscores the structural differences between the two ETFs, with ETHE offering direct exposure to staking rewards and ETH functioning as a smaller, more liquid vehicle for Ether. Grayscale's approach aligns with broader industry trends, as institutional adoption of staking has grown amid Ethereum's 2022 transition to proof of stakeGrayscale Adds Staking to Ethereum and Solana Investment^[2]Grayscale Launches Wall Street's First Ethereum, Solana Staking …^[4].

Regulatory clarity from the Securities and Exchange Commission (SEC) has been pivotal to the launch. The agency recently approved generic listing standards for crypto ETPs and clarified that staking activities do not violate securities laws, enabling firms like Grayscale to integrate staking into their productsGrayscale Launches Wall Street's First Ethereum, Solana Staking …^[4]. This development addresses a key limitation of existing Ethereum ETFs, which previously lacked staking functionality. Analysts note that the absence of yield generation has contributed to Ethereum ETFs lagging behind Bitcoin ETFs in terms of inflows, with Bitcoin ETFs managing $164.5 billion in assets compared to Ethereum's $30.5 billionGrayscale Ethereum ETFs Are First in US to Add Staking^[3]. Grayscale's innovation could narrow this gap by making Ethereum ETFs more competitive in an environment where yield-seeking investors are critical to adoption.

The market response has been positive, with Ethereum's price surging 156% over six months to approach a $5,000 all-time high in September 2025. This outperformance has driven increased demand for Ethereum-related products, particularly as spot ETFs gain traction. Grayscale CEO Peter Mintzberg described the staking rollout as "first-mover innovation," emphasizing the firm's position as the largest digital asset-focused ETF issuer by assets under management ($35 billion)Grayscale Launches First Staking Spot Crypto ETPs in U.S.^[1]. The firm plans to expand staking to additional products as the ecosystem evolves, potentially challenging BlackRock's dominance in the Ethereum ETF space.

Industry observers highlight the strategic implications of Grayscale's move. By enabling staking, the firm bridges the gap between traditional finance and decentralized networks, offering investors a dual benefit of price exposure and yield generation. This model could attract institutional capital, which has historically been hesitant to engage with staking due to operational complexities. Grayscale's institutional-grade infrastructure and transparency reporting further mitigate risks, addressing concerns about custody and validator reliability. The firm's recent publication, Staking 101: Secure the Blockchain, Earn Rewards, underscores its commitment to investor education, a critical factor in scaling adoptionGrayscale Launches First Staking Spot Crypto ETPs in U.S.^[1].

The launch also signals a shift in the regulatory landscape for crypto ETPs. While the U.S. market remains fragmented compared to the EU's harmonized MiCA framework, Grayscale's success in securing SEC approval for staking demonstrates growing acceptance of crypto innovation. This could pave the way for more products to integrate staking, provided they meet regulatory guardrails. As the digital asset ecosystem matures, the ability to generate yield through staking is likely to become a standard feature of crypto ETFs, further blurring the lines between traditional and digital finance.