Grayscale Ethereum ETFs Are First in US to Add Staking

Core Insights - U.S. investors can now receive staking rewards through Grayscale's Ethereum Trust ETF and Ethereum Mini Trust ETF, marking a significant development in the market [1][2] - Grayscale's Ethereum ETFs have been pivotal in the traditional financial market since their inception, with the firm converting its products into spot Ethereum ETFs after SEC approval [4][6] - The introduction of staking rewards is expected to enhance the attractiveness of Ethereum ETFs, which have lagged behind Bitcoin ETFs in terms of net assets [5][6] Group 1: Staking and ETF Developments - Grayscale has activated staking for its Ethereum Trust ETF (ETHE) and Ethereum Mini Trust ETF (ETH), allowing investors to earn rewards for the first time [1] - Staking has also been initiated in the Grayscale Solana Trust, which is pending regulatory approval for ETF conversion [2] - The absence of staking rewards has previously hindered the adoption of Ethereum funds since their launch in summer 2024 [4] Group 2: Market Performance and Growth - Ethereum's price has surged by 156% over the past six months, significantly outperforming Bitcoin's 50% gain, reaching an all-time high near $5,000 in September [6] - The total net assets in Bitcoin ETFs stand at $164.5 billion, while Ethereum ETFs have net assets of $30.5 billion, indicating a growing demand for Ethereum products [5] - Grayscale's CEO emphasized that staking represents a first-mover innovation that the company aims to leverage for investor value [6][7] Group 3: Competitive Landscape - Grayscale is the leading digital asset-focused ETF issuer by assets under management (AUM) and plans to expand staking to more products as the digital asset ecosystem evolves [7] - The introduction of staking rewards could help Grayscale compete more effectively with BlackRock, which currently dominates the Bitcoin and Ethereum ETF market [7]