Grayscale Issues First Ethereum Staking Rewards Distribution For US Spot ETF
Grayscale declared a staking rewards payment on its Ethereum Staking ETF. The payout is the first US-traded spot crypto exchange-traded fund to plan a payout associated with staking on-chain. In a press release on Monday, the company approved the ruling.
The Grayscale Ethereum Trust ETF shareholders will get a dividend of approximately $0.08 per share. The quantity is through proceeds obtained by the sale of staking awards. The distribution will be done on Tuesday. Eligibility is decided based on the holdings at the end of the market on Monday.
On October 6, Grayscale was able to stake its Ethereum products. The staking takes place via institutional custodians and third-party validator providers. The ruling made the Ethereum Trust and the Ethereum Mini Trust of the firm the first US-listed spot crypto products to have exposure to Ether staking.
Grayscale’s Regulatory Framework And Fund Structure
Staking is a process of locking cryptocurrency on a proof-of-stake blockchain. The procedure promotes authentication for transactions and network security. To encourage this support, periodic rewards are given to the participants. Grayscale converts such rewards and then distributes them in the form of cash. Rewards to investors will be in the form of dollars rather than Ether.
The funds of the company do not fall under the Investment Company Act of 1940. Investors can stake their funds in this structure. It also puts the funds in a new regulatory vehicle compared to traditional ETFs. Grayscale added that the structure is versatile in its present product line-up.
In 2013, Grayscale Investments established itself. The company sponsors various digital asset investment products. The company boasts of approximately $31 billion in assets under management. According to the data from Yahoo Finance, ETHE increased by 4.33% in the first trading session on Monday.
Also Read: Ethereum Price Holds Key Support as ETH Eyes Potential Early 2026 Rally
The Grayscale is the only US fund that is currently paying out returns based on Ethereum staking. Nevertheless, other strategies are being implemented in the industry. Some of the proposals for spot Ethereum ETFs include the option for staking. The US regulators are still reviewing these applications.
BlackRock Advances Steps Toward A Staked Ethereum ETF
Cboe BZX has proposed a rule change in March. The filing requests authorization to stake in the Fidelity Ethereum Fund. The reform would enable the fund to pledge some or all of its Ether using third-party providers. In February, a similar filing was made on the 21Shares Core Ethereum ETF.
BlackRock had previously been headed to a staking-enabled product. In November, the company recorded a staked Ethereum ETF in Delaware. Its current iShares Ethereum Trust ETF started in July 2024. Staking is not part of that fund.
According to SoSoValue data, net inflows have been positive, and weekly totals have been above zero. The chart also showed that overall net assets have increased to almost $19 billion.
These were inflows after a period of intense outflows and falling crypto prices. The recovery indicates that there is a possibility that some investors might have considered the decline as a strategic move to increase their holdings.
Also Read: Ethereum’s Stablecoin Surge: A Record-Breaking Q4
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