Key Takeaways

Which ETF products will enable staking?

Grayscale’s ETHE, ETH, and GSOL.

Why is this update so game-changing?

Move will broaden investor access to on-chain rewards, while introducing yield-bearing crypto exposure to investors. 

On 6 October, Grayscale Investments, one of the world’s largest digital asset investment platforms, introduced staking for its Ethereum and Solana exchange-traded fund (ETF) products — A move that marks a first for the U.S Crypto ETF market.

The company announced that Grayscale Ethereum Trust ETF (ETHE), Grayscale Ethereum Mini Trust ETF (ETH), and Grayscale Solana Trust (GSOL) have become the first U.S.-listed spot crypto exchange-traded products (ETPs) to enable staking.

The update allows investors to gain exposure not only to the spot prices of Ether and Solana, but also to the networks’ staking rewards — Traditionally earned by users who lock their tokens directly on-chain. According to Peter Mintzberg, Grayscale’s CEO, 

“Staking in our spot Ethereum and Solana funds is exactly the kind of first-mover innovation Grayscale was built to deliver.”

How Grayscale’s staking model works

Grayscale will stake its ETH and SOL ETF holdings through institutional custodians and a diversified network of validator providers. The process will be passive, meaning investors do not need to hold crypto or manage validators themselves.

Instead, the funds will earn staking rewards, which are then expected to remain within the fund, potentially enhancing its net asset value (NAV) over time.

The ETHE fund is Grayscale’s flagship Ethereum product, designed primarily for institutional and long-term investors. On the contrary, the ETH Mini Trust offers a lower-fee, retail-friendly version.

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Author: Adewale Olarinde