Grayscale Activates Staking for Ethereum and Solana ETPs, Marking U.S. First

Executive Summary

Grayscale Investments announced the activation of staking functionality for its Grayscale Ethereum Trust ETF (ETHE), Grayscale Ethereum Mini Trust ETF (ETH), and Grayscale Solana Trust (GSOL). This initiative positions Grayscale as the first U.S.-listed spot crypto ETP provider to offer integrated staking, allowing investors to generate yield from their Ethereum and Solana holdings within traditional investment structures. The move targets enhanced investor value potential and further bridges conventional financial markets with the digital asset ecosystem.

The Event in Detail

On October 6, 2025, Grayscale confirmed that ETHE and ETH became the first U.S.-listed spot crypto ETPs to enable staking. Concurrently, Grayscale Solana Trust (GSOL) also activated staking functionality. Peter Mintzberg, CEO of Grayscale, described this as a "first mover innovation."

For ETHE and ETH, the staking integration provides exposure to Ether while offering the potential for yield generation. For GSOL, it allows investors to access Solana staking through traditional brokerage accounts, with anticipation of it becoming one of the first spot Solana ETPs with staking pending regulatory approval for uplisting. Grayscale will manage staking passively through institutional custodians and a diversified network of validator providers. This process aims to maintain the funds' core objectives of providing spot asset exposure while introducing the value accrual benefits of network staking. It is noted that ETHE and ETH are exchange-traded products not registered under the Investment Company Act of 1940, implying different regulatory oversight compared to traditional ETFs. Grayscale is noted to stake 40,000 ETH, a position valued at $4.8 billion, potentially generating a 2.06% annual yield for investors.

Market Implications

The introduction of staking functionality by Grayscale has implications for the broader digital asset market. It could increase interest and capital inflows into Grayscale's ETHE, ETH, and GSOL products. Staking offers yield generation, making these investment products potentially more attractive to traditional investors. This may lead to increased demand for ETH and SOL and a potential reduction in their circulating supply as more assets become locked in staking protocols.

This development sets a precedent for other traditional asset managers to consider offering similar staking-enabled crypto investment products. This trend could accelerate the blurring of lines between traditional finance (TradFi) and decentralized finance (DeFi), further integrating crypto yield mechanisms into mainstream investment portfolios.

Expert Commentary

Peter Mintzberg, CEO of Grayscale, stated that:

"Staking in our spot Ethereum and Solana funds is exactly the kind of first mover innovation Grayscale was built to deliver." He further added: "As the #1 digital asset-focused ETF issuer in the world by AUM, we believe our trusted and scaled platform uniquely positions us to turn new opportunities like staking into tangible value potential for investors." This commentary underscores Grayscale's strategic intent to lead in institutional crypto product innovation.

The move is viewed as part of a broader trend toward the institutionalization of Ethereum staking. Industry analysis suggests that as more asset managers explore products offering yield and liquidity, Ethereum is positioned to become a core investment asset alongside Bitcoin. The potential approval of similar products from other firms, such as VanEck's rumored Lido staked Ethereum ETF, could open avenues for substantial institutional capital flow into Ethereum staking.

Broader Context

This development by Grayscale aligns with a growing trend of institutional adoption and integration of digital assets. The tokenization of real-world assets (RWAs) is expanding, with tokenized money-market and Treasury fund assets surging 80% year-to-date, reaching approximately $7.4 billion in 2025. Institutional tokenization projects exceed 200, with a total value locked (TVL) of $65 billion in 2025, an 800% increase from 2023 figures.

The ability to earn yield through staking within regulated investment vehicles enhances the appeal of digital assets for institutional investors who often require compliant and straightforward access to such opportunities. This innovation from Grayscale contributes to the maturation of the crypto market by providing a more accessible pathway for institutional participation in yield-generating activities previously more common in DeFi.