A First for US-Listed Crypto ETFs
Grayscale has made history by announcing the first staking rewards payout tied to a US-listed spot crypto exchange-traded product. The distribution comes from staking rewards earned by the Grayscale Ethereum Trust ETF (ETHE), marking a major milestone in the integration of on-chain yield with traditional financial products.
According to Grayscale, ETHE shareholders will receive approximately $0.08 per share, funded by the sale of Ether staking rewards. The payout is scheduled for Tuesday and will be based on ETF holdings recorded at the market close on Monday.
This is the first time a US-listed crypto ETP has formally distributed cash income generated directly from blockchain staking activity.
How Ethereum Staking Works Inside the ETF
Grayscale enabled Ethereum staking for its products on Oct. 6, conducting staking through institutional custodians and third-party validator providers. This move made both ETHE and the Grayscale Ethereum Mini Trust ETF (ETH) the first US-listed spot Ethereum products to gain exposure to staking rewards.
On Ethereum’s proof-of-stake network, staking involves locking up ETH to help validate transactions and secure the blockchain. In return, validators earn rewards over time.
For Grayscale’s ETF investors, these rewards are:
- Earned in ETH on-chain
- Sold by the fund
- Distributed to shareholders in US dollars, not in Ether
This structure allows traditional investors to benefit from staking yield without managing crypto wallets, validators or on-chain operations themselves.
Regulatory Structure Enables Staking
Grayscale’s funds operate outside the Investment Company Act of 1940, which governs most traditional US ETFs. While this structure offers fewer regulatory protections compared with standard ETFs, it provides the flexibility required to enable staking.
This distinction has allowed Grayscale to move faster than competitors in bringing staking-linked income to US markets.
Founded in 2013, Grayscale manages roughly $31 billion in assets, making it one of the largest digital asset managers globally.
Broader Push Toward Ethereum Staking ETFs
Grayscale is currently the only US-listed fund to issue staking-based payouts, but it may not remain alone for long.
Several major asset managers are actively pursuing approval to add staking to their spot Ether ETFs:
- Fidelity filed a proposal to enable staking for its Ethereum fund
- 21Shares submitted a similar request earlier this year
- BlackRock registered a staked Ethereum ETF in Delaware in November
While BlackRock’s iShares Ethereum Trust ETF (ETHA) does not yet include staking, the filing signals growing institutional interest in on-chain yield as a core ETF feature.
Ethereum ETFs Gain Traction in Their First Full Year
US spot Ether ETFs began trading in July 2024, making 2025 their first full calendar year on the market. During that time, they attracted $9.6 billion in net inflows, according to market data.
Collectively, US spot Ether ETFs now manage around $18 billion in assets:
- BlackRock’s ETHA leads with approximately $11.1 billion
- Grayscale’s ETHE follows with about $4.1 billion
- Grayscale Ethereum Mini Trust holds roughly $1.5 billion
The introduction of staking payouts could further differentiate Ethereum ETFs from Bitcoin-only products, offering investors a combination of price exposure and yield.
Why This Matters for Crypto and TradFi
The first staking payout represents more than just income—it signals a shift in how traditional finance engages with blockchain networks.
Ethereum is no longer viewed solely as a speculative asset, but increasingly as:
- A yield-bearing digital asset
- A settlement layer for financial activity
- A source of programmable, on-chain cash flows
As regulatory frameworks evolve, staking-enabled ETFs may become a key bridge between decentralized networks and institutional capital.
Participating in Ethereum’s Yield Economy Beyond ETFs
While ETFs bring staking to traditional investors, many users prefer direct and flexible ways to engage with the crypto ecosystem. KXZ Store provides crypto-friendly access to digital gift cards and Web3 services, allowing users to participate in the broader Ethereum and crypto economy without relying solely on traditional investment products. As on-chain yield becomes mainstream, platforms like KXZ Store help connect everyday usage with the evolving digital asset landscape.