Grayscale staked 32,000 ETH (about $150 million) to enable staking rewards for its new US Ether ETPs, making it the first U.S. fund issuer to offer staking-based passive income within an exchange-traded product structure.
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Grayscale staked 32,000 ETH (≈$150M) to support staking rewards for its Ether ETPs.
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Shareholders will receive staking income net of sponsor and custodian fees, with payout rates varying by trust class.
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October features SEC deadlines for 16 crypto ETP filings, including staking applications from major issuers; regulatory staffing may slow responses.
Grayscale staking Ether: Grayscale staked 32,000 ETH (~$150M) to enable ETP staking rewards — learn how shareholders will earn passive income now.
Grayscale staked $150 million in Ether after launching the first US crypto ETPs offering staking rewards, ahead of key SEC altcoin ETP deadlines this month.
Crypto-focused asset manager Grayscale staked $150 million worth of Ether after introducing staking for its exchange-traded products (ETPs) on Monday.
The asset manager transferred 32,000 Ether (ETH), worth roughly $150 million, according to blockchain analytics firm Lookonchain. The stake supports Grayscale’s newly launched ETPs that include staking rewards as assets of the fund.
Source: Lookonchain
What does Grayscale staking 32,000 ETH mean for investors?
Grayscale staking Ether enables ETP shareholders to earn staking rewards that are treated as fund assets under the firm’s ETP Staking Policy. After sponsor and custodian fees, distributions differ by trust: around 77% of generated rewards to Ethereum Trust (ETHE) shareholders and about 94% to the Ethereum Mini Trust, per filings.
How are staking rewards allocated and taxed?
Grayscale’s policy treats staking rewards as fund assets that increase net asset value. Net rewards are distributed after fees; specific fee tiers were disclosed in Securities Act filings. Tax treatment follows standard fund distribution rules and varies by investor jurisdiction. Consult a tax advisor for precise guidance.
Why is this the first US staking ETP and what precedes it?
Grayscale’s launch is the first U.S. ETP explicitly offering staking rewards within an exchange-traded product governed under the Securities Act of 1933. Other issuers, including 21Shares and BlackRock, have staking-related filings pending SEC responses later in October. Market participants previously saw staking incorporated in other product structures, such as a Solana staking fund launched in July under the Investment Company Act of 1940.
Several important regulatory milestones fall in October: the SEC faces decisions on 16 crypto ETP applications, with at least two staking-focused filings — 21Shares’ Core Ethereum ETF (TETH) and BlackRock’s iShares Ethereum Trust (ETHA) amendment — on the calendar. These filings are registered under the Securities Act, similar in structure to Grayscale’s ETPs.
Crypto ETP flows by asset as of Friday (in millions of US dollars). Source: CoinShares
When could SEC timing and the government shutdown affect ETP approvals?
The SEC has flagged operational changes due to a government shutdown, limiting staff and potentially slowing review timelines. With no immediate funding resolution, decision dates in late October may be delayed. Market flows, however, have already reacted: crypto ETP inflows hit a weekly record of $5.95 billion after the shutdown heightened demand for crypto exposure, according to CoinShares data.
Frequently Asked Questions
How much will investors earn from Grayscale staking?
Net investor returns depend on staking yield minus sponsor and custodian fees. Filings indicate roughly 77% of generated rewards to Ethereum Trust shareholders and about 94% to Ethereum Mini Trust shareholders after fees.
What filings are pending with the SEC in October?
The SEC has 16 crypto ETP applications on its October calendar, including staking-related filings from 21Shares (TETH) and BlackRock (ETHA). Outcomes may influence product structures and market demand.
Key Takeaways
- Grayscale staked 32,000 ETH: Enables staking rewards as fund assets for newly launched Ether ETPs.
- Shareholder distributions vary: Net payouts depend on the trust class and disclosed fee schedules.
- Regulatory timing matters: October SEC deadlines and a government shutdown could delay decisions and impact market flows.
Conclusion
Grayscale’s staking of 32,000 ETH (~$150M) marks a notable step in U.S. ETP evolution by integrating staking rewards into fund economics. With multiple SEC filings pending in October and heightened investor inflows, staking ETPs are now a focal point for institutional product design and regulatory review. Monitor official SEC filings and fund disclosures for updates.
