Grayscale Announces Initial Staking Distribution for US Ethereum ETF

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Grayscale has announced a staking rewards distribution for its Ethereum Staking exchange-traded fund, marking the first scheduled payout from onchain staking for any US-listed spot cryptocurrency exchange-traded product.

According to a Monday press release, shareholders of the Grayscale Ethereum Trust ETF (ETHE) will receive approximately $0.08 per share. The distribution, funded by proceeds from the sale of staking rewards, is scheduled for Tuesday and will be based on shareholder positions recorded at Monday’s market close.

The firm activated staking for its Ethereum products on October 6, utilizing institutional custodians and third-party validators. This initiative made ETHE and the Grayscale Ethereum Mini Trust ETF (ETH) the first US-listed spot crypto ETPs to provide investors with exposure to Ether staking rewards.

Staking involves committing cryptocurrency to a proof-of-stake blockchain to participate in transaction validation and network security, for which participants earn rewards. For its Ethereum Trust ETF, Grayscale sells these earned rewards and distributes the resulting cash to investors in US dollars, rather than distributing Ether directly.

These Grayscale funds are structured outside the regulations of the Investment Company Act of 1940, the core law governing most US ETFs. This alternative structure allows for activities like staking but does not provide the same regulatory protections as traditional US exchange-traded funds.