Grayscale Makes History by Distributing ETH Staking Rewards

Grayscale has crossed a significant milestone that could transform how U.S. investors access yields from Ethereum.

Key Takeaways

Grayscale becomes the first U.S. crypto issuer to distribute Ethereum staking rewards directly to ETF investors.
ETHE shareholders received a payout of $0.083178 per share, totaling approximately $9.4 million.
This distribution marks a historic integration of staking rewards into investment products.
The event draws attention from both the crypto community and traditional finance sectors.
Grayscale aims to expand staking offerings while ensuring transparency and investor education.

Grayscale makes history by distributing ETH staking rewards to ETF holders, marking a first for U.S. spot crypto products.

Grayscale's Groundbreaking ETH Staking Distribution

Grayscale has made headlines by becoming the first U.S.-listed issuer to directly share Ethereum staking rewards with investors in exchange-traded funds (ETFs). This groundbreaking achievement was announced on January 5, with the company revealing that its Grayscale Ethereum Staking ETF (ETHE) has successfully completed its first distribution related to on-chain staking activities.

Details of the First Staking Payout

The firm confirmed that ETHE distributed $0.083178 per share to eligible investors, which reflects earnings from Ethereum staking rewards accrued between October 6 and December 31, 2025. The payout, executed on January 6 after a record date of January 5, amounted to about $9.4 million for the fund.

Instead of providing ETH directly, Grayscale opted to sell the earned staking rewards and distribute cash to investors, thus keeping the underlying Ether holdings intact. Starting January 5, ETHE began trading ex-dividend.

This payout is a significant milestone as it marks the first instance of a U.S.-listed spot crypto exchange-traded product (ETP) transferring staking income to investors, effectively merging traditional ETF structures with Ethereum’s proof-of-stake yield model.

In October 2025, Grayscale initiated staking for its Ethereum products, making ETHE and its sister product, the Ethereum Staking Mini ETF (ticker: ETH), the pioneers among U.S. ETPs to support staking. Both funds underwent a formal name change in early January to highlight their new capabilities.

Implications for Ethereum ETFs

The move is attracting considerable attention from both the cryptocurrency sector and traditional finance. The introduction of staking rewards adds a yield component that was previously missing from U.S. spot Ethereum ETFs, which could significantly alter how institutional investors evaluate their exposure to Ethereum.

Since ETHE is not registered under the Investment Company Act of 1940, it enjoys greater flexibility compared to traditional ETFs; however, this flexibility also comes with higher risks. Factors such as lock-up periods, performance of validators, network issues, and smart contract vulnerabilities can all influence the returns on staked ETH.

Despite these challenges, analysts see this payout as an important advancement toward integrating blockchain-driven economic models into regulated investment vehicles. Other prominent issuers, including BlackRock and Fidelity, have filed proposals related to Ethereum staking but have not yet made rewards distributions.

Grayscale plans to broaden its staking offerings across its product range, simultaneously emphasizing that investor education and transparency will remain vital to its approach. Future payouts will rely on staking performance and market conditions, with no set timeline for additional distributions.

This initiative underscores Ethereum’s increasing significance as a yield-generating asset for institutional investors, highlighting the rapid evolution of crypto ETFs beyond merely tracking market prices.