Grayscale’s new staking feature lets investors earn rewards on Ethereum and Solana through traditional brokerage accounts.
Investment management firm Grayscale announced on Monday, Oct. 6, that it has launched staking for its Ethereum and Solana exchange-traded products (ETPs), making them the first U.S.-listed spot crypto ETPs to offer this feature.
The Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Mini Trust (ETH) now allow investors to stake Ether, while Grayscale Solana Trust (GSOL) has activated staking for Solana (SOL). ETHE currently holds $4.82 billion in assets, and ETH holds over $3 billion, according to SoSoValue data.
Notably, ETHE and ETH are not registered under the Investment Company Act of 1940 and do not have the same regulations as standard ETFs or mutual funds, according to a press release viewed by The Defiant.
Meanwhile, GSOL currently trades on the OTC Markets but is awaiting regulatory approval to become an ETP. If approved, it would be one of the first spot Solana ETPs with staking available through a standard brokerage account.
Grayscale said the move gives investors the chance to earn rewards while retaining the funds’ main goal of providing spot Ethereum or Solana exposure. Currently, Ether is trading at $4,716, while Solana (SOL) is changing hands at $237.
“By enabling staking inside publicly listed, spot-based ETPs, investors can access staking rewards through the same traditional brokerage accounts they already use, no action required,” Grayscale’s Head of Research, Zach Pandl, told The Defiant. “This makes Ethereum (and soon Solana) a more liquid, secure, and inexpensive way to approach staking than solutions currently available.”
He added that staking also supports network security and provides “a differentiated and uncorrelated source of return at a time when the Federal Reserve is cutting rates and investors are looking for new sources of income.”
For instance, after the recently passed GENIUS Act reduced yields on many stablecoin deposits, investors are increasingly seeking alternative ways to earn returns in the crypto sector. ETH (and GSOL) incorporate staking returns into NAV to compound, while ETHE aims to pay a monthly distribution.
Founded in 2013, Grayscale manages approximately $35 billion in assets. It’s also the issuer of the Grayscale Bitcoin Trust (GBTC), which currently manages $21.7 billion in net assets.
The launch is the latest in a series of moves by Grayscale to expand and diversify its product offerings. Earlier this year, the firm introduced a new investment trust for $IP, the native token of the Story Network, a blockchain focused on programmable intellectual property.
And in July, the SEC approved the firm’s proposal to convert its Digital Large Cap Fund into a spot ETF. The fund offers diversified exposure to five major digital assets: Bitcoin (BTC), ETH, Ripple (XRP), SOL, and Cardano (ADA).