Graysale’s ETHE becomes the first U.S. spot Ethereum ETP to distribute realized staking rewards to holders

News

Grayscale ETHE has become the first exchange-traded product in the U.S. market to distribute staking rewards to investors. That also marks the first time on-chain staking yield is being distributed through regulated crypto investment products. 

On Monday, Grayscale affirmed that Ethereum Staking ETF (ticker: ETHE) issued proceeds earned in Ethereum staking as a result of new shareholder distributions. The rewards were accrued by the fund between October 6, 2025, and December 31, 2025, marking the first time a U.S.-traded spot crypto ETF has distributed staking income directly to investors.

First U.S. Ethereum ETP to pass through staking income

The company states that shareholders included in the record as of Jan. 5, 2026, shall be entitled to collect $0.083178 per share of ETHE. The distribution date is January 6, 2026. The payout was financed by the sale of staking rewards that the fund had earned during the covered period, rather than any reduction or increase in the principal Ether holdings of the fund.

Although staking has been an essential part of Ethereum’s proof-of-stake system since its inception, it had only been included in U.S.-listed ETFs as of late 2025. Grayscale enabled staking on its Ethereum products in October 2025.

ETHE and ETH are formally organized as exchange-traded products and are not registered under the Investment Company Act of 1940. Consequently, they are not regulated under the same regulations as 40 Act-registered ETFs and mutual funds. Grayscale has indicated that investing in these products is a high-risk venture, which may result in a loss of the amount invested. 

Grayscale’s fund structure, record dates, and distribution mechanics

The staking issuance is only levied on the proceeds realized within the accrued period, and it has no certain payout schedule. Grayscale issued no press release regarding its future distribution rate or yield expectations for future staking activity.

ETHE was ex-dividend at the beginning of the market on Monday. Thus, investors who purchase shares between the market opening on Monday and after the market opens will not receive their payout at this time.

Grayscale added that the distribution will be in accordance with the tradition of the financial markets, and the staking income will be deposited in the form of exchange-traded securities. The company further guaranteed that holdings of Ether of the funds remain unchanged, except that staking rewards were required to be sold to cover the distribution.

Product renaming and staking-enabled lineup

In conjunction with the staking distribution, Grayscale has also undertaken a naming exercise for its staking-enabled products based on its new organizational structure. Grayscale Ethereum Trust ETF was changed to Grayscale Ethereum Staking ETF, under the same ticker, ETHE. Similarly, the Grayscale Ethereum Mini Trust ETF is currently trading under the name Ethereum Staking Mini Ethereum ETF, and the ETF is listed under the ticker symbol “ETH”.

The latter also confirmed that its Solana-based product is now known as the Grayscale Solana Staking ETF (ticker: GSOL) and that its staking products adhere to a set of naming conventions.

Claim your free seat in an exclusive crypto trading community – limited to 1,000 members.

Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0

PRC Comment Policy

Your comments MUST BE constructive with vivid and clear suggestion relating to the post.

Your comments MUST NOT be less than 5 words.

Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.

Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.

Constructive REPLY to comments is allowed

Leave a Reply