Grayscale, an asset manager focused on cryptocurrency, has staked $150 million in Ether following the launch of staking for its exchange-traded products (ETPs) on Monday.
The company staked 32,000 Ether (ETH) valued at $150 million, as per blockchain data from Lookonchain.
This transfer occurred just a day after Grayscale unveiled staking options for its Ether ETPs, positioning itself as the first crypto fund issuer in the U.S. to provide staking-based passive income for its offerings.
This initiative allows Grayscale’s ETP and its investors to begin earning passive income via staking rewards on the $150 million. According to Grayscale’s ETP Staking Policy, these staking rewards will be classified as “assets of the fund.”
After accounting for sponsor and custodian fees, shareholders will earn up to 77% of the total staking rewards from Grayscale’s Ethereum Trust and around 94% from the Ethereum Mini Trust, as specified in the SEC filings.
Both the Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH) are registered as exchange-traded products under the Securities Act of 1933, distinct from the Investment Company Act of 1940, which applies to traditional mutual funds.
This differentiates ETPs structurally from ETFs regulated by the 1940 Act.
At least two more Ether staking-enabled funds are anticipated to receive feedback from the U.S. Securities and Exchange Commission (SEC) this October.
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October appears to be a pivotal month for crypto, with 16 crypto ETP applications scheduled for review by the SEC.
Among these, at least two crypto staking funds are awaiting decisions this month, including 21Shares’ Core Ethereum ETF (TETH) staking filing due on Oct. 23 and BlackRock’s iShares Ethereum Trust (ETHA) ETP amendment seeking to incorporate staking rewards expected on Oct. 30.
The Ether fund from 21Shares is registered under the Securities Act of 1933, categorizing it as an ETP, similar to Grayscale’s ETH and ETHE ETPs.
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Meanwhile, the REX-Osprey Solana Staking ETF launched in July, marking the first Solana (SOL) staking ETF under the Investment Company Act of 1940, allowing crypto ETFs to hold the majority of their asset directly and manage staking rewards accordingly.
Grayscale’s Solana fund, the Grayscale Solana Trust (GSOL), has initiated staking and is awaiting regulatory approval to transition to an ETP.
However, the ongoing government shutdown could delay the SEC’s review of crypto ETP applications, as the agency has stated it will operate with “modified conditions” and “extremely limited staff” until the funding bill is passed.
With no resolution in sight, the Senate plans to reconvene on the funding bill later on Tuesday, after repeated failures to reach an agreement between Republicans and Democrats.
This government shutdown has fueled increased investor interest in cryptocurrency funds and decentralized assets, amid rising uncertainty.
Last week, crypto ETPs experienced their highest inflows ever following the government shutdown, amassing $5.95 billion in total investments, as reported by Cointelegraph on Monday.
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