Grayscale Makes History with First U.S. Ethereum Staking ETF Distribution

Grayscale’s Ethereum Staking ETF has marked a milestone by becoming the first U.S. listed Ethereum ETP to distribute realized staking rewards to shareholders. The fund paid out $0.083178 per share, based on staking income earned from October 6, 2025, through December 31, 2025. The distribution was made available to shareholders as of January 5, 2026, with the payment date set for January 6, 2026.

The payout reflects a shift in the structure of U.S. crypto investment vehicles. The fund generated the staking rewards from its Ethereum holdings and sold the proceeds to cover the distribution, ensuring no reduction in the fund's principal Ether holdings. This mechanism distinguishes it from traditional ETFs, which operate under different regulatory frameworks.

Grayscale emphasized that these ETPs are not registered under the Investment Company Act of 1940. This structure allows for greater flexibility in the distribution of staking income but also carries higher risk for investors according to industry analysis.

Why Did This Happen?

Grayscale’s move followed its decision to enable staking for Ethereum products in October 2025. This action aligned with a broader industry shift toward integrating staking capabilities into regulated investment products. The firm also updated the naming conventions for its staking-enabled products to reflect the new structure.

The Ethereum Staking ETF (ticker: ETHE) was renamed from the Grayscale Ethereum Trust ETF. The Grayscale Ethereum Staking Mini ETF (ticker: ETH) and the Grayscale Solana Staking ETF (ticker: GSOL) also received new names.

How Did Markets React?

The market responded with cautious optimism. The distribution was seen as a significant development for Ethereum-based ETPs, reinforcing Grayscale's leadership in the digital asset space. The move also signaled growing institutional interest in Ethereum’s proof-of-stake model, which had previously been excluded from traditional ETF structures.

The fund’s CEO highlighted that distributing staking rewards marks a milestone for both Grayscale and the broader Ethereum community. This development is likely to influence future product designs and investor demand for crypto-related investment vehicles.

What Are Analysts Watching Next?

Analysts are monitoring how this new structure affects the broader U.S. crypto ETF landscape. While this was the first such distribution, the lack of a fixed payout schedule raises questions about future returns. Grayscale has not provided guidance on future staking yields or distribution rates, leaving investors to rely on historical performance.

Market observers are also watching the performance of Ethereum ETFs in the first week of 2026. Recent inflows suggest renewed investor confidence, particularly in Ethereum-based products.

As Grayscale sets a new precedent, other crypto ETF providers may follow suit. The implications for future staking-enabled funds and broader market participation remain a key focus for investors and industry watchers.