The cash payout comes from staking awards that people got after the fund started allowing Ethereum staking in October.
Greyscale has announced a staking rewards distribution for its Ethereum Staking exchange-traded fund (ETF). This is the first time a US-listed spot crypto exchange-traded product (ETP) has set a payout based on onchain staking activity.
According to a press statement from Monday, shareholders of the Greyscale Ethereum Trust ETF (ETHE) will get around $0.08 per share from the sale of staking rewards. The distribution will happen on Tuesday based on holdings registered at market closing on Monday.
Greyscale turned on staking for their Ethereum products on October 6. Institutional custodians and third-party validator providers handled the staking. Because of this development, ETHE and Greyscale Ethereum Mini Trust ETF (ETH) became the first US-listed spot crypto ETPs to acquire exposure to Ether staking.
How staking works and why payouts are issued in cash
Staking is when you lock up cryptocurrency on a proof-of-stake blockchain and get incentives every so often. This helps make sure that transactions are real and keeps the network safe. Grayscale’s Ethereum Trust ETF sends investors cash instead of Ether, which is valued $3,237.
The Investment Company Act of 1940, which is the principal statute that controls US ETFs, does not apply to Grayscale’s funds.This means that staking is allowed, but the funds have different legal safeguards than regular US ETFs.
Greyscale Investments is a digital asset manager that sponsors crypto investment products. The company says it has over $31 billion in assets under management.
US spot Ether ETFs and the rush to stake
Greyscale is the first fund traded in the US that pays out money based on Ether staking. However, other big asset managers are waiting for the US Securities and Exchange Commission to approve their spot Ether ETFs.
In March, Cboe BZX asked US authorities to approve a proposed rule change that would let the Fidelity Ethereum Fund incorporate staking. The idea would let the fund stake some or all of its Ether through third-party providers. This suggestion came after a similar one was made in February for the 21Shares Core Ethereum ETF.
In November, BlackRock registered a staked Ethereum exchange-traded fund in Delaware. This was an early step in the process of establishing a staking-enabled product that would sit next to its existing spot Ether ETF. The iShares Ethereum Trust ETF (ETHA), which started in July 2024, doesn’t include staking right now.
US Ether ETF market growth and fund dominance
In July 2024, US spot Ether ETFs started trading. This means that 2025 was the first complete calendar year in which investors could buy them. The funds brought in $9.6 billion in new money throughout the year.
CoinMarketCap says that US spot Ether ETFs manage around $18 billion in assets all together.
The iShares Ethereum Trust ETF (ETHA) from BlackRock has the biggest market cap, around $11.1 billion. The ETHE from Greyscale comes in second with about $4.1 billion, while the Greyscale Ethereum Mini Trust ETF comes in third with about $1.5 billion.