Grayscale, a crypto asset manager, has launched staking for its exchange-traded products (ETPs), becoming the first crypto fund issuer in the US to provide passive income opportunities through staking.
On Monday, Grayscale announced that its Ether (ETH) ETFs — the Grayscale Ethereum Mini Trust ETF (ETH) and Grayscale Ethereum Trust ETF (ETHE) — are now the first US-listed spot crypto funds to offer staking, branding this advancement as “another first-mover milestone.”
Additionally, Grayscale’s Solana (SOL) fund, the Grayscale Solana Trust (GSOL), has also started staking and is currently seeking regulatory approval for uplisting to an ETP, potentially positioning it as one of the first spot Solana ETPs to enable staking, according to a post from the company on X.
By facilitating staking in its Ethereum and Solana products, Grayscale aims to provide investors with exposure to the “long-term value growth of these networks while preserving the funds’ core objectives.”
“Staking in our spot Ethereum and Solana funds is precisely the innovative first mover initiative that Grayscale was designed to achieve,” stated Grayscale CEO Peter Mintzberg. “As the leading digital asset-focused ETF issuer in the world by AUM, we trust that our established and scalable platform positions us uniquely to transform new opportunities like staking into real value for investors.”
Both ETHE and ETH are exchange-traded products registered under the Securities Act of 1933, not the Investment Company Act of 1940, which is the regulatory framework for traditional mutual funds.
This distinction makes them structurally different from ETFs governed by the 1940 Act, although they adhere to the same legal framework as the spot Bitcoin (BTC) and Ether ETFs approved earlier this year.
“ETHE and ETH hold digital assets; however, investing in ETHE and ETH does not equate to a direct investment in digital assets,” noted Grayscale.
Related: Aging boomers and global wealth seen boosting crypto until 2100
