Key Points
- Grayscale Assets Management plans to introduce staking for its spot Ethereum ETFs.
- Grayscale also plans to introduce staking to its Solana Trust (GSOL).
Grayscale Assets Management, a digital asset manager, has announced plans to introduce staking for its existing spot Ethereum ETFs. This development is the first of its kind in Ethereum ETFs and is being planned despite the ongoing US shutdown.
Staking in Ethereum ETFs
The price of Ethereum is showing strength as it approaches the $4,600 mark. This move by Grayscale is significant and a first in the crypto space. The company plans to launch a staking facility for its US-listed spot Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH).
This decision comes as the Ethereum price bounces back and is eyeing a breakout to new all-time highs. The staking feature aims to provide investors with exposure to the long-term value growth of the Ethereum network while preserving the funds’ primary objectives. Both ETHE and ETH provide spot Ether exposure.
Grayscale has noted that ETHE and ETH are not registered under the Investment Company Act of 1940 and are therefore not subject to the same regulations or protections as 40 Act-registered ETFs and mutual funds. Other Ethereum ETFs from US issuers, such as BlackRock, Fidelity, and Ark Invest, still need to obtain SEC approval for the staking feature.
Staking in Solana Trust
In addition to Ethereum ETFs, Grayscale also plans to introduce staking to its Solana Trust (GSOL). This will provide investors with a traditional brokerage route to earn staking rewards. The firm has filed with the U.S. SEC to convert GSOL into an ETF under the 1933 Act.
The REX-Osprey Solana Staking ETF (SSK), which is regulated under the Investment Company Act of 1940, has recently begun trading. This ETF offers direct spot SOL exposure alongside rewards generated from on-chain staking. Since its launch in July, the Rex Osprey Solana staking ETF has grown its assets under management to $404 million.
This decision by Grayscale comes at a time when the cryptocurrency market is navigating the ongoing US government shutdown. Market analysts believe that this could further delay the decision for several crypto ETFs, scheduled for October.
