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.
According to data from Sosovale, ETHE is the second-largest Ethereum ETF, valued at $4.82 billion. ETH Mini Trust ranks fourth, valued at $3.31 billion.
Source: Sosovalue
The GSOL trust, currently traded over the counter, has also activated staking and could become one of the first Solana Spot ETPs with staking if its exchange listing is approved.
Why this matters for the market
Until now, U.S Spot crypto ETFs have provided exposure only to the underlying asset’s price. By enabling staking, Grayscale has effectively introduced yield-bearing crypto exposure into traditional finance – A feature that could pressure competitors like BlackRock, Fidelity, and Ark to follow suit.
The move will also broaden investor access to on-chain rewards, eliminating the technical risks associated with self-custody, validator management, and slashing penalties. For long-term holders, it would introduce an additional return component that mirrors the yield mechanics found in decentralized finance (DeFi).
Regulatory and investor implications
The addition of staking is notable given the U.S. Securities and Exchange Commission’s cautious position on yield-generating crypto products. Grayscale’s structure — where staking rewards remain within the fund rather than distributed — may have been key to regulatory acceptance.
Grayscale’s latest move could redefine how investors interact with crypto, bridging the gap between DeFi and Wall Street.