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Grayscale Stakes $150M in Ether After Launching ETP Staking

Grayscale Stakes $150M in Ether, Launches Staking for ETP Shareholders Ahead of SEC Review

  • Grayscale staked $150 million worth of Ether after launching staking for its exchange-traded products.
  • The company moved 32,000 Ether to staking just one day after the ETP staking was introduced.
  • Staking allows ETP holders to earn Passive income, with rewards treated as fund assets.
  • Shareholders could keep up to 77% of staking rewards in the Ethereum Trust and about 94% in the Ethereum Mini Trust, after fees.
  • The U.S. Securities and Exchange Commission is set to review multiple Ether and crypto ETP applications in October amid ongoing regulatory uncertainty.

Grayscale, a crypto-focused asset manager, has staked $150 million worth of Ether after introducing staking features for its exchange-traded products (ETPs) this week. The company transferred 32,000 Ether, valued at $150 million, one day after launching the new staking option.

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According to blockchain data platform Lookonchain, this makes Grayscale the first U.S.-based crypto fund issuer to give its fund investors access to passive income from Ether staking. Grayscale stated that staking rewards from the ETPs would count as part of the fund’s assets, based on its published ETP Staking Policy.

The company’s filings with the U.S. Securities and Exchange Commission (SEC) indicate that after sponsor and custodian fees are deducted, shareholders in the Grayscale Ethereum Trust could earn up to 77% of generated staking rewards, while those invested in the Grayscale Ethereum Mini Trust could receive up to 94%. Both ETPs are registered under the Securities Act of 1933, which sets them apart from traditional mutual funds that fall under the Investment Company Act of 1940.

At least two additional Ether staking-enabled funds, including 21Shares’ Core Ethereum ETF (TETH) and BlackRock’s iShares Ethereum Trust (ETHA) ETP, are awaiting decisions from the SEC, expected in October.

Following a U.S. government shutdown, crypto ETPs experienced record weekly inflows, reaching a cumulative investment of $5.95 billion, according to CoinShares. The SEC warned that responses to crypto ETP filings could be delayed due to the limited staff working until new government funding is approved.

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