Quick Takeaways
- Grayscale staked $150 million worth of ETH to offer passive income through its crypto ETPs.
- The SEC is expected to rule on 16 crypto ETP applications this month, including Ethereum staking products.
- Ongoing government shutdown could delay approvals, adding a layer of uncertainty.
Crypto ETP Deadlines Are Pushing Grayscale to Move First
Grayscale just made a bold move in crypto, staking a whopping $150 million in Ethereum, and the timing couldn’t be more telling.
Right after launching staking rewards for its crypto ETPs, Grayscale sent 32,000 ETH into a staking contract.
Why? Because the company sees what’s coming, and it’s getting ready. The SEC is set to decide on a wave of crypto ETP applications this month, and Grayscale wants to be first in line with something no one else in the U.S. has done: offering staking rewards through a regulated crypto product.
This isn’t just about hype or headlines. It’s about adding real value for investors. By staking the ETH behind its Ethereum Trust (ETHE) and Ethereum Mini Trust (ETH), Grayscale is giving shareholders a way to earn passive income, not just wait and hope for price gains.
Here’s the breakdown:
- ETHE holders get up to 77% of staking rewards
- ETH (the Mini Trust) offers up to 94% of staking rewards
Both are after fees, of course, but still, not bad for holding onto a crypto-backed ETP.
October’s Crypto ETP Deadlines Could Change Everything
Why now? Because October is huge for crypto ETPs in the U.S. The SEC is reviewing 16 different crypto fund filings, and at least two major ones are pushing to add staking to their list of features.
Keep an eye on:
- 21Shares Core Ethereum ETF (TETH) – Decision expected October 23
- BlackRock iShares Ethereum Trust (ETHA) – Amendment with staking included, up by October 30
If these get approved, it opens the door for staking-enabled ETPs across the board. That means more crypto funds offering passive income, not just price exposure, something traditional investors have been craving.
Meanwhile, Grayscale isn’t the only one exploring this path. The REX-Osprey Solana Staking ETF already launched in July under a different regulatory framework (the 1940 Act), and Grayscale’s own Solana Trust (GSOL) is now staking too, waiting for approval to convert into a full ETP.
But There’s a Catch: The Shutdown Might Slow It All Down
Now, here’s the tricky part: the U.S. government shutdown is still dragging on, and it’s putting the brakes on regulatory work. Due to the SEC’s staffing shortage, delays are all but inevitable.
With so many crucial decisions on the calendar, that isn’t ideal. But surprisingly, the shutdown hasn’t scared off investors. In fact, crypto ETPs saw record-breaking inflows of nearly $6 billion last week alone.
With markets jittery, people are clearly looking at crypto, especially products that offer real rewards as a smart hedge.
Grayscale’s $150M Stake Isn’t Just a Flex, It’s a Signal
This isn’t just about being flashy. Grayscale is sending a message: staking is the future of crypto investing, especially in regulated products. If the SEC signs off on staking in ETPs, the whole industry could shift, and Grayscale would already be leading the pack.
Of course, staking comes with risks too. There’s the chance of validator slashing, technical issues, or even changing ETH rules down the line. Plus, it’s still unclear how the SEC will handle taxation or reporting around staking rewards.
But Grayscale seems ready to deal with that. By putting $150 million on the table, they’re not just experimenting; they’re betting that this is the direction crypto investing is headed.
