Grayscale is introducing staking for its Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL) offerings, including the Grayscale Ethereum Trust ETF (NYSE:ETHE), the Grayscale Ethereum Mini Trust ETF (NYSE:ETH), and the Grayscale Solana Trust (NYSE:GSOL).
What Happened: As reported on Monday by former Fox Business journalist Eleanor Terrett, the news comes after the SEC approved generic listing standards for crypto ETPs and clarified that staking activities do not violate securities laws.
Staking allows investors to lock tokens to secure a blockchain network in exchange for rewards, effectively earning yield simply by holding assets.
The yield will be distributed in the following ways:
- For ETHE, staking rewards will be distributed directly to investors.
- For ETH and GSOL, returns will be gradually reflected in the fund's price.
- GSOL is expected to be uplisted as a full ETP soon, aligning with anticipated SEC approvals for more spot Solana products.
Also Read: Here’s Why Paul Tudor Jones Just Called Bitcoin ‘Very Very Appealing’
Why It Matters: Grayscale filed its staking addendum with the SEC on Monday and will rely on institutional partners like Coinbase and validator networks to manage the staking process.
Previously, the lack of staking rewards was cited as a barrier to Ethereum ETF adoption compared with Bitcoin ETFs, which now hold $164.5 billion versus Ethereum's $30.5 billion.
Interest in Ethereum funds has surged alongside ETH's 156% rally over six months, outpacing Bitcoin's 50% gain and pushing ETH near a $5,000 all-time high in September.
Grayscale CEO Peter Mintzberg described the launch as "first-mover innovation," signaling plans to expand staking across more products and narrow the gap with BlackRock's dominant ETFs.
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