Grayscale Pioneers Staking in U.S. Spot Crypto ETPs for Ethereum and Solana

Institutional-Grade Staking Debuts as Grayscale Integrates Ethereum and Solana Yields into Regulated Exchange-Traded Products

TL;DR:

• Grayscale becomes the first U.S. issuer to introduce staking in spot crypto exchange-traded products for Ethereum and Solana.
• The new ETPs allow investors to earn staking rewards through brokerage accounts instead of on-chain methods.
• The move positions Grayscale as a first-mover bridging DeFi yields and traditional finance amid evolving SEC oversight.

Grayscale has taken another bold step in its long pursuit of integrating decentralized finance with regulated investment products, launching the first U.S. spot crypto exchange-traded products that incorporate staking. The firm confirmed on October 6, 2025, that staking is now active for its Ethereum Trust ETF (ETHE) and Ethereum Mini Trust (ETH), alongside the Grayscale Solana Trust (GSOL). The announcement marks the first time U.S. investors can access staking rewards directly through exchange-traded vehicles held in standard brokerage accounts, expanding mainstream exposure to yield-generating crypto assets.

Grayscale’s Ethereum-based products—ETHE and ETH—are structured as exchange-traded products rather than 1940 Act-registered funds, preserving flexibility around digital asset management. The company is also moving toward regulatory approval to uplist GSOL, which currently trades over-the-counter, as a full-fledged ETP. Together, these developments strengthen Grayscale’s hold on the institutional digital asset market, where the firm oversees approximately $35 billion in assets under management as of September 30, 2025, making it the largest digital asset-focused ETF issuer globally by coin market cap ranking.

Chief Executive Peter Mintzberg described the launch as a “first-mover innovation” designed to give investors the benefits of staking without requiring direct blockchain participation. Grayscale plans to execute staking passively through institutional validators and custodial partners, ensuring compliance and operational security while contributing to network decentralization. The company simultaneously released an educational paper, Staking 101: Secure the Blockchain, Earn Rewards, to help traditional investors understand validator incentives, network uptime, and the distribution of staking yields.

The rollout lands at a delicate moment for the U.S. regulatory landscape. The Securities and Exchange Commission has repeatedly delayed decisions on whether to allow staking features in Ethereum ETFs proposed by BlackRock and Fidelity. Those delays have left the market uncertain about how the SEC intends to treat staking income within regulated investment vehicles. Grayscale’s decision to move forward—under existing disclosures that frame its products as ETPs rather than ETFs—signals confidence that staking rewards can coexist with the SEC’s current guidelines. The approach may, however, draw scrutiny if future rulings impose new standards on validator operations or reward accounting within exchange-traded structures.

Market analysts see the introduction of staking as a structural shift in how crypto price index products could evolve. By embedding validator yields directly into an exchange-traded framework, Grayscale is positioning its products to outperform static spot vehicles whose returns depend solely on price appreciation. Ethereum and Solana currently dominate staking activity by total value locked, giving the products a measurable competitive edge in yield capture. For investors tracking crypto price movements and broader market sentiment, the integration of staking could add a new variable to how the coin market cap reflects real income-based performance across major digital assets.

Earlier iterations of Ethereum ETFs had avoided staking altogether due to SEC uncertainty, and Grayscale itself previously faced discount pressures on ETHE, which traded at as much as 6.7% below its net asset value in mid-2024. The addition of staking may help narrow such discounts by increasing the underlying yield profile. However, analysts caution that high management fees—ETHE charges 2.5% annually—could still weigh on returns compared to competing products that track the same crypto price index benchmarks.

Grayscale’s launch follows months of growing momentum in the exchange-traded crypto sector. Other issuers have begun amending spot Solana ETF filings to include staking provisions, and analysts expect the first Solana staking ETFs could receive approval before mid-October 2025. The SEC’s approval of standardized listing rules for multi-crypto ETPs in September accelerated these developments, clearing the way for faster product rollouts. Grayscale’s timing appears designed to cement its leadership before competitors close in, especially as the crypto price recovery and rising on-chain yields revive investor interest in staking-enabled exposure.

The firm’s broader ecosystem continues to expand beyond Ethereum and Solana. Its Grayscale CoinDesk Crypto 5 ETP (GDLC), listed on NYSE Arca on September 19, 2025, holds around $789.4 million in assets and tracks Bitcoin, Ethereum, XRP, Solana, and Cardano—representing roughly 90% of total market capitalization according to its proprietary crypto price index. The 0.59% expense ratio makes it one of the more cost-efficient multi-asset offerings in the sector. Combined, these products illustrate Grayscale’s broader strategy: creating yield-generating, institution-ready vehicles that reflect the depth and diversity of the digital asset landscape while appealing to investors seeking both exposure and income.

The introduction of staking within spot crypto ETPs not only underscores how rapidly the industry is evolving but also sets a precedent for integrating blockchain rewards into mainstream financial products. Whether regulators fully embrace this model remains uncertain, yet Grayscale’s move signals that traditional investment infrastructure is beginning to align with the functional economics of decentralized networks—a convergence that could redefine the future of crypto price performance and investor returns.

This article has been refined and enhanced by ChatGPT.