Grayscale Takes a Big Step with Ethereum and Solana Staking

Grayscale Investments has taken a major step forward in the U.S. cryptocurrency market. On October 6, 2025, the company launched staking for its Ethereum and Solana exchange-traded products (ETPs), becoming the first U.S. asset manager to offer staking in spot crypto ETFs.

This move lets investors earn blockchain rewards directly through regulated investment products, without having to handle crypto wallets or validators themselves. Grayscale’s Ethereum Trust (ETHE) and the Ethereum Mini Trust (ETH) are now the first spot ETPs listed in the United States to include staking.

At launch, the firm staked around 32,000 ETH, worth about $150 million, marking a strong start for the program. Ethereum’s price quickly reacted, jumping to $4,707 and extending its recent rally. Many traders saw the announcement as a sign of growing confidence in Ethereum’s long-term potential.

Michael Sonnenshein, CEO of Grayscale, said in the company’s statement, “Staking in our spot Ethereum and Solana funds is exactly the kind of first mover innovation Grayscale was built to deliver.”

The firm’s staking approach focuses on stability and transparency. Grayscale will stake its assets passively through a mix of institutional custodians and validator providers. This structure not only generates rewards for investors but also supports the security and long-term health of the Ethereum and Solana networks.

The move also shows how traditional finance is starting to meet decentralized finance (DeFi). By adding staking to ETFs, Grayscale gives both retail and institutional investors a chance to earn crypto rewards in a familiar, regulated format.

Investors can join in through normal brokerage accounts or Grayscale’s investment portals. Larger institutions can use over-the-counter (OTC) trading desks. Grayscale made clear that standard Know Your Customer (KYC) and Anti-Money Laundering (AML) checks apply for all investors.

Before this launch, adding staking to an exchange-traded product in the U.S. faced regulatory hurdles. The Securities and Exchange Commission (SEC) had been cautious about allowing staking in ETFs because of concerns about custody, investor protection, and market manipulation. 

However, new “Generic Listing Standards” now allow ETP issuers to add staking features more easily once shareholders approve them.

This change allowed Grayscale to move faster with its plan. The company had previously withdrawn an earlier staking proposal from the SEC website on September 26, 2025. With the updated standards, it was finally able to go live just weeks later.

How the New Ethereum and Solana Staking Products Work

Grayscale’s staking setup gives investors two main ways to earn rewards. The larger Ethereum Trust (ETHE) pays out staking rewards in cash. This means investors can receive regular income directly into their brokerage accounts. 

The smaller Ethereum Mini Trust (ETH), on the other hand, reinvests all staking rewards back into the fund automatically, helping investors grow their holdings over time.

This design offers flexibility for different types of investors. Those looking for steady income can choose ETHE, while long-term holders who want to build their position can go with ETH. Both funds let investors gain staking exposure without directly dealing with private keys, blockchain software, or technical setup.

The reward split also differs slightly between the two funds. ETHE distributes 77% of staking yields to investors, with the remaining 23% going to service providers such as custodians, staking partners, and Grayscale itself. 

The Mini Trust (ETH) provides an even higher pass-through rate, with 94% of staking rewards going to investors and 6% covering service costs.

Grayscale also launched staking for its Solana Trust (GSOL). This fund is currently traded on the OTC Markets Group platform but is awaiting approval to be uplisted as a full ETP. Once approved, it will likely become one of the first spot Solana ETPs in the U.S. that offer staking.

Together, ETHE, ETH, and GSOL manage roughly $8.25 billion in assets. Across all products, Grayscale oversees about $35 billion. The company said it plans to expand staking to more products over time while keeping its focus on transparency, security, and investor education.

As part of the launch, Grayscale released an educational report titled “Staking 101: Secure the Blockchain, Earn Rewards.” The report explains how staking works, how validator rewards are generated, and what risks investors should be aware of.

Grayscale processes staking at the product level. This means that trust holdings are staked through a diversified network of validators. The process generates on-chain rewards, which are then passed on to investors. In short, investors can benefit from staking without running validator nodes or maintaining crypto wallets.

All standard rules still apply. Investors need to meet each product’s participation requirements, which can vary by jurisdiction. Minimum investment amounts and accreditation standards may differ based on where an investor is located.

It’s also important to note that ETHE and ETH are not registered under the Investment Company Act of 1940. This means they do not have the same protections as traditional ETFs, such as oversight from the SEC, strict disclosure rules, or diversification standards. As a result, these ETPs carry higher risks compared to traditional investment funds.

Staking yields depend on several factors, including network performance, validator reliability, and overall blockchain activity. Grayscale passes through net staking returns after deducting product fees. Actual yields will therefore fluctuate based on market conditions and validator outcomes.

A Milestone for Crypto and Traditional Finance Integration

Grayscale’s new staking-enabled ETPs are a major step in bringing crypto yields into the mainstream U.S. market. For the first time, investors can gain exposure to staking rewards through the same channels they use for stocks or ETFs, without managing crypto directly.

This move also gives Grayscale a competitive advantage in a growing market. The company now stands alongside newer entrants like Rex Shares and Osprey Funds, which launched their own staked Ether ETFs earlier this month. However, Grayscale’s strong reputation and early lead could help it capture larger institutional inflows.

Analysts say that adding staking to these products transforms them from passive trackers into yield-generating assets. This could attract portfolio managers who are looking for new ways to earn consistent returns in a volatile market.

Ethereum remains the dominant network for smart contracts, decentralized finance, and NFTs. That leadership position gives staking in ETH a natural appeal for investors. With Grayscale now offering a regulated path to participate, even conservative investors can access blockchain rewards safely.

The timing also aligns with a broader trend. More asset managers are exploring ways to combine the familiar structure of ETFs with crypto-native features like staking and yield generation. Grayscale’s model may set the standard for how these hybrid products evolve in the future.

The company believes this integration will open new opportunities for both retail and institutional investors. “Launching staking within regulated products wasn’t just about adding another feature,” a Grayscale spokesperson said. “It’s about building the infrastructure to make digital assets accessible and rewarding for all types of investors.”

Grayscale’s Ethereum and Solana staking products also demonstrate how crypto is becoming more compatible with traditional finance systems. In the past, investors had to deal with complex setups and uncertain regulations to earn staking rewards. Now, those same benefits are available through standard brokerage accounts.

The introduction of both cash payouts and compounding options makes these products even more appealing. Investors can now choose between earning immediate income or reinvesting for long-term growth, all while benefiting from the potential price appreciation of Ethereum and Solana.

As more institutional players enter the crypto space, innovations like this are expected to shape the next phase of digital asset adoption. Grayscale’s combination of spot ETPs and staking could become a model for how other asset managers bring crypto yield products to regulated markets.

This launch also helps solidify Grayscale’s position as a leader in crypto investment management. With $35 billion in total assets under management and a growing list of crypto-based products, the company continues to play a central role in connecting Wall Street with blockchain technology.

By offering staking through regulated investment vehicles, Grayscale has made earning rewards from crypto simpler than ever before. Investors no longer need to worry about wallets, keys, or node operations. 

Everything is handled within a familiar financial structure, allowing both individuals and institutions to earn blockchain rewards safely and efficiently.

With staking now built into ETFs for Ethereum and Solana, Grayscale has opened a new chapter for digital assets in the United States. It marks a turning point for how crypto products are designed, regulated, and used, and shows that the gap between traditional finance and decentralized finance is finally beginning to close.