Grayscale Launches Staking for Ether ETPs
Crypto asset manager Grayscale has staked 32,000 Ether worth $150 million after introducing staking functionality for its Ether-based exchange-traded products (ETPs). The move follows the firm’s announcement on Monday, making it the first US-based crypto fund issuer to integrate staking into its ETPs.
According to blockchain data from Lookonchain, the staking transaction occurred shortly after Grayscale’s launch. The company confirmed that staking rewards will be treated as “assets of the fund,” benefiting shareholders directly.
Under Grayscale’s ETP Staking Policy, shareholders will receive up to 77% of staking rewards from the Ethereum Trust (ETHE) and around 94% from the Ethereum Mini Trust (ETH), after sponsor and custodian fees.
Structural Difference Between ETPs and ETFs
Both the Grayscale Ethereum Trust ETF (ETHE) and Ethereum Mini Trust ETF (ETH) are registered under the Securities Act of 1933, rather than the Investment Company Act of 1940, which governs traditional mutual funds. This distinction makes ETPs structurally different from ETFs, particularly regarding asset custody and staking mechanisms.
SEC to Decide on 16 Crypto ETPs in October
October is a pivotal month for crypto regulation, with the US Securities and Exchange Commission (SEC) expected to decide on 16 crypto ETP applications. Among them are two Ether staking funds — the 21Shares Core Ethereum ETF (TETH), scheduled for review on Oct. 23, and BlackRock’s iShares Ethereum Trust (ETHA) amendment on Oct. 30.
21Shares’ filing mirrors Grayscale’s approach under the 1933 Act, while the REX-Osprey Solana Staking ETF, launched in July, operates under the 1940 Act, allowing it to hold spot assets directly and distribute staking rewards.
Solana and Other Funds Await SEC Greenlight
Grayscale’s Solana Trust (GSOL) has also enabled staking and is pending approval for uplisting to an ETP. The introduction of multiple staking-based crypto funds underscores growing institutional interest in generating yield from digital assets.
Government Shutdown May Delay SEC Decisions
However, the ongoing US government shutdown could delay these regulatory outcomes. The SEC announced that it would operate “under modified conditions” with limited staff until Congress passes a new funding bill.
As political gridlock persists, uncertainty has driven increased interest in crypto investment vehicles, reflecting a broader market shift toward decentralized and yield-bearing assets.
