Nazia Saeed
- Grayscale transfers 40,000 ETH as it positions for staking, potentially becoming the first US Ethereum ETF sponsor to stake holdings.
- Regulatory clarity from the SEC indicates certain liquid staking approaches may be permissible for regulated funds, though approval is still pending.
- Institutional demand could surge, with staking-enabled Ether ETFs allowing investors to earn rewards instead of passively holding the asset.
Cryptocurrency asset manager Grayscale is positioning itself to stake a portion of its vast Ether holdings, signaling potential confidence that US regulators may soon allow staking within exchange-traded products (ETPs). Onchain data from Arkham Intelligence showed that Grayscale transferred more than 40,000 Ether (ETH$4,611) on Thursday, consistent with preparations for staking rewards. If confirmed, the firm would become the first US Ethereum ETF sponsor to implement staking.
Grayscale’s Ethereum Trust (ETHE) currently manages over 1.06 million ETH, valued at more than $4.8 billion. Launched in 2017 as a private placement vehicle, the firm rolled out the Ethereum Mini Trust in 2024 via a partial spin-off of ETHE’s assets.
Regulatory backdrop and market positioning
The move comes amid ongoing uncertainty around staking approval. Earlier this year, the US Securities and Exchange Commission (SEC) delayed decisions regarding whether Grayscale funds could incorporate ETH staking. Since then, the SEC has provided additional guidance, suggesting that certain forms of liquid staking may not fall under its direct jurisdiction, potentially clearing the way for regulated funds to participate.
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Although Grayscale has submitted proposals for staking, the SEC has yet to grant approval, indicating the company may be strategically positioning ahead of a ruling. Currently, no US spot Ether ETFs include staking features.
The Arkham-tracked transfer occurred shortly after the SEC approved the Grayscale Digital Large Cap Fund, a multi-asset crypto ETP providing exposure to Bitcoin (BTC$117,528), Ether, XRP (XRP$3.11), Solana (SOL$249.53), and Cardano (ADA$0.9243). The product allows investors to gain diversified crypto exposure without directly holding individual tokens.
Staking ETFs could reshape institutional demand
Analysts have highlighted that approval of staking in US Ether ETFs could dramatically boost institutional participation. Investors would gain the ability to earn rewards rather than passively holding the asset.
Markus Thielen, head of 10x Research, told Cointelegraph that staking for Ethereum ETFs could “dramatically reshape the market.” Meanwhile, demand for Ether continues to rise: spot ETF inflows have surged this year, while ETH held on exchanges dropped to a three-year low, largely due to corporate treasuries and ETFs absorbing available supply.
