US investors receive cash rewards as Grayscale’s Ethereum Trust ETF becomes the first spot crypto fund to offer staking payouts.
Grayscale has announced its first staking rewards distribution for the Ethereum Staking ETF, marking a milestone as the first US-listed spot crypto ETP to pay out earnings from on-chain staking activity. Shareholders of the Grayscale Ethereum Trust ETF (ETHE) will receive approximately $0.08 per share, with eligibility based on holdings recorded at market close.
Grayscale enabled Ethereum staking for its funds in October 2025, utilizing institutional custodians and third-party validators. Unlike typical Ether rewards, the payout is converted to cash in US dollars, offering investors immediate liquidity without receiving ETH directly. Staking involves locking cryptocurrency on a proof-of-stake blockchain to validate transactions and secure the network in exchange for periodic rewards.
Grayscale’s staking distribution sets a precedent as other US spot Ethereum ETFs from major asset managers, including BlackRock and Fidelity, pursue regulatory approval for staking-enabled products. Spot Ether ETFs, first trading in July 2024, now manage approximately $18 billion in assets, with Grayscale ETHE at $4.1 billion and BlackRock’s iShares Ethereum Trust ETF at $11.1 billion.
The milestone highlights growing institutional adoption of Ethereum staking and provides US investors with a new income stream from crypto ETFs, signaling broader integration of blockchain rewards into traditional investment products.
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