Grayscale’s move could have a major impact on how U.S.-based investors gain access to Ethereum yield.
You can read more about it here:
- Grayscale ETHE is the first U.S. listed crypto ETP that distributes Ethereum staking reward.
- This payout allows you to convert your on-chain staking earnings into cash, without reducing the amount of ETH that you hold.
- It could also accelerate the adoption of Ethereum ETFs that offer yields.
Grayscale, the U.S.’s first listed cryptocurrency issuer, has become history as it is now passing Ethereum staking reward directly to Exchange-Traded Fund investors.
A Jan. 5, 2019 article confirmed the milestone. announcement Grayscale has announced the completion of its Grayscale Ethereum ETF (ETHE), which completed its very first distribution connected to on-chain activity.
Staking payout for a U.S. Ethereum Spot ETP
ETHE has reported that it distributed $0.83178 per eligible share, which represents Ethereum proceeds, to all shareholders.ETH) staking rewards earned between Oct. 6 and Dec. 31, 2025. It was paid out on January 6th, following the record-breaking date of Jan. 5, and totaled approximately $9.4million across all funds.
Grayscale did not distribute ETH to investors directly. Instead, it sold the accumulated staking reward and paid them in cash. The fund’s Ether holdings remained unchanged. ETHE started trading after the dividend on January 5.
The first U.S. listed spot crypto ETP to pass on staking revenue successfully is now available for investors.
Grayscale activated ETHE (ticker ETH) and the Ethereum ETF Staking Mini ETF will be the first U.S. ETPs with staking capabilities in October of 2025. Early January, both funds received a rename to reflect their new features.
The importance of the Ethereum ETF milestone
Both crypto and traditional financial institutions are closely watching the move. The Staking Rewards introduces a yield component previously unavailable for U.S. Ethereum spot ETFs. This could change how institutional investors evaluate ETH exposure.
ETHE does not fall under Investment Company Act of 1940 and therefore offers greater flexibility but comes with higher risks. Returns on staked ETH can be affected by lock-up times and validator performance. Network outages, smart contracts vulnerabilities, as well as network failures, are all factors that could affect the returns.
The analysts still see the payment as a major step in integrating Blockchain-native economies into regulated investments vehicles. BlackRock, Fidelity and other issuers have also adopted the technology. filed There are no rewards yet for Ethereum stakes, but there have been proposals and amendments.
Grayscale continues to push forward with its plans for expanding stakes throughout the Grayscale product range. The company also says that investor education and transparent will be central to its strategy. It explained that any payouts will depend on staking and market conditions. There is no set timeline for future distributions.
The move illustrates Ethereum’s increasing role as an asset that generates yield for institutional investors, and how ETFs have evolved beyond just tracking price.
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Source: crypto.news
