Grayscale Opens ETF Staking, U.S. Spot Crypto ETFs Enter the Staking Era

Grayscale has introduced a staking mechanism for its Ethereum Trust ETF (ETHE), Ethereum Mini Trust ETF (ETH), and Solana Trust (GSOL), making them the first U.S. spot crypto ETFs to support staking.
This move is enabled by the SEC's new Generic Listing Standards (GLSS), allowing eligible ETFs to stake without separate SEC approval, provided shareholders authorize it.
Grayscale's profit distribution varies by fund: ETHE investors receive 77% of staking income, while ETH investors get 94%, with the remainder going to the issuer and service providers.
The addition of staking is expected to boost institutional investment in Ethereum by aligning ETF returns more closely with direct token holding and staking.
Solana is also poised to benefit as its ETF gains staking functionality, enhancing its appeal to investors.
Industry experts view this development as expanding crypto ETF capabilities and accelerating the integration of crypto assets into mainstream financial markets.

SoSoValue analysts noted that on October 6th, asset management company Grayscale announced the introduction of a staking mechanism for its Ethereum Trust ETF (ETHE), Ethereum Mini Trust ETF (ETH), and Solana Trust (GSOL), which is in the process of transitioning to an ETF. These products became the first spot crypto ETFs in the United States to support staking.

This initiative is facilitated by the recently launched Generic Listing Standards (GLSS) by the U.S. Securities and Exchange Commission (SEC). Under the new regulations, spot crypto ETFs that meet these standards no longer need separate SEC approval and can only conduct staking operations with shareholder authorization. Meanwhile, the SEC's previous policy proposal for staking, which was previously open for public comment, was withdrawn on September 26th.

Grayscale disclosed its differentiated profit distribution model in the announcement:

• Ethereum Trust ETF (ETHE): The issuer, custodian, and staking service provider share a combined 23% of the staking income, with investors receiving 77%;

•Ethereum Mini Trust ETF (ETH): The share of the issuer, custodian and staking service provider is reduced to 6%, and investors can obtain 94% of the returns.

This institutional breakthrough is positive for Ethereum. The addition of staking functionality will bring ETF returns closer to those of directly holding and staking the token, significantly increasing institutional investment appetite. Furthermore, other ETF issuers are expected to quickly follow suit, triggering a price war among ETF issuers over staking returns, further benefiting ETF investors.

Solana is also expected to benefit. As the next asset expected to have staking functionality available at launch, the Solana ETF is expected to significantly enhance its appeal.

The industry generally believes that with the implementation of universal standards, all future crypto spot ETFs listed based on this mechanism will simultaneously introduce staking functionality. This development not only expands the product form and functional boundaries of crypto ETFs, but is also seen as a significant step in accelerating the entry of crypto assets into mainstream capital markets.