Grayscale has made history by distributing the first‑ever staking rewards from a U.S. spot ETP, paying Ethereum ETF shareholders about $0.08 per share in cash. The payout reflects staking rewards earned between October 6 and December 31.
Grayscale has made history by distributing the first‑ever staking rewards from a U.S. spot ETP, paying Ethereum ETF shareholders about $0.08 per share in cash. The payout reflects staking rewards earned between October 6 and December 31.
Why This Is a Milestone
- First U.S. spot ETP to pass through staking rewards
- Confirms that staking income can be ETF‑compatible
- Moves crypto ETPs closer to yield‑bearing investment products
Until now, U.S. spot crypto ETFs provided only price exposure—no protocol yield.
How It Worked
- ETH held by the ETF was staked on Ethereum
- Rewards accrued over the period were converted and distributed in cash
- Shareholders received the payout without managing validators or slashing risk
This mirrors how traditional funds distribute dividends or interest.
Why Cash Distribution Matters
- Avoids tax and custody complications of in‑kind crypto payouts
- Fits cleanly into existing brokerage and fund‑account systems
- Makes staking yield accessible to institutional and retail investors alike
It also sets a template other issuers can follow.
Broader Implications
- Strengthens Ethereum’s case as a yield‑generating network
- May pressure other ETF issuers to enable staking
- Could influence how regulators view staking as income vs. securities activity
If adopted widely, staking could materially change how investors value ETH ETFs.
Bottom Line
Grayscale’s $0.08 per‑share staking payout marks a turning point for U.S. crypto ETFs, proving that protocol yield can flow through regulated investment vehicles. It’s a small distribution—but a big precedent for Ethereum and the future of crypto ETFs.
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