Grayscale begins distributing staking rewards to Ethereum ETF investors in 'landmark moment'

Crypto asset manager Grayscale has begun distributing staking rewards to investors in its Ethereum staking exchange-traded fund.

In a statement on Monday, the firm said the Grayscale Ethereum Staking ETF is the first Ethereum ETF to pass staking rewards directly through to shareholders.

“Distributing staking rewards to ETHE shareholders is a landmark moment, not just for Grayscale, but for the entire Ethereum community and ETPs at large,” said Peter Mintzberg, CEO of Grayscale, in the statement. “As the first Ethereum ETP in the U.S. to pass staking rewards through to investors, we’re reinforcing Grayscale’s role as an early leader in bringing new digital-asset capabilities into the ETP wrapper." 

In October, Grayscale was the first firm to enable staking in U.S. spot crypto ETFs for both the Grayscale Ethereum Trust ETF and the Grayscale Ethereum Mini Trust ETF. Both have since been renamed to the Grayscale Ethereum Staking ETF and the Grayscale Ethereum Staking Mini ETF. Other firms have launched Ethereum ETFs that include staking features, including one from Rex Shares and Osprey Funds and another from 21Shares. 

Distributions stem from staking rewards earned between Oct. 6 to Dec. 31. Shareholders will get "$0.083178 per share held," and that will be paid out on Jan. 6, the firm said on Monday. 

The Securities and Exchange Commission first approved Ethereum ETFs in 2024, garnering billions of dollars in assets under management and cementing Ethereum's place in institutional adoption. Since under the Trump administration, other crypto ETFs have launched, including ones tracking DOGE, Solana and XRP, some of which also allow staking.