Grayscale’s Ethereum ETF Starts Paying Staking Rewards: Huge News for ETH USD Price?

Core Insights - Grayscale's Ethereum ETF (ETHE) has made history by distributing its first Ethereum staking rewards to shareholders, marking a significant development for US spot crypto products [1][3][4] - The price of Ethereum (ETH USD) is currently around $3,250, reflecting a 2.5% increase in the last 24 hours, amidst a broader positive trend in the crypto market [1] Company Developments - Grayscale initiated Ethereum staking for its US products in October 2025, allowing ETHE shareholders to receive $0.083178 per share as staking rewards for the period from October 6 to year-end [4][5] - This innovation enables investors to earn on-chain staking income without the need to operate a validator or engage with decentralized finance (DeFi) applications, which is seen as a transformative step for traditional finance (TradFi) adoption of cryptocurrency [5] Industry Trends - The introduction of staking rewards in Ethereum ETFs shifts the focus from merely tracking price to generating passive income, prompting competition among issuers to provide yield [2][6] - Grayscale manages approximately $31 billion across its products and aims to maintain a competitive edge against rivals like 21Shares and Bitwise, who are also exploring staking features for Ethereum and Solana products [8]