Grayscale Debuts First Staking-Enabled Spot Crypto ETFs
The firm’s new Ethereum and Solana ETFs mark the first U.S.-listed spot crypto funds to integrate staking, signaling a major leap in regulated blockchain investment access.
Grayscale Investments has launched the first U.S.-listed spot cryptocurrency exchange-traded funds (ETFs) that incorporate staking, a move set to redefine how traditional investors engage with digital assets. The products — the Ethereum Mini Trust ETF (ETH), Ethereum Trust ETF (ETHE), and Solana Trust ETF (GSOL) — are pending final regulatory clearance but already represent a watershed moment in the evolution of crypto-linked financial products.
Grayscale Extends Leadership in Digital Asset Innovation
As the largest digital asset investment firm, with approximately $35 billion in assets under management (AUM), Grayscale continues to build on its pioneering role in bridging institutional finance and blockchain technology. The company said that adding staking capabilities to its existing Ethereum and Solana trusts enables investors to participate in the long-term value creation of proof-of-stake networks while maintaining the core exposure to spot crypto assets.
In a press release issued on October 6, Grayscale emphasized that its staking-enabled ETFs aim to combine regulated investment access with on-chain yield generation — a blend long sought by traditional investors eager to gain blockchain exposure without leaving the securities framework.
Grayscale CEO Peter Mintzberg described the development as a continuation of the firm’s mission to lead crypto-financial innovation.
“Staking in our spot Ethereum and Solana funds is exactly the kind of first-mover innovation Grayscale was built to deliver,” Mintzberg said.
The company plans to execute staking through a network of institutional custodians and validator providers. This passive staking strategy is intended to both generate network rewards and strengthen the underlying blockchain protocols by supporting validator activity and consensus security.
Regulatory Evolution and SEC Engagement
Earlier this year, the New York Stock Exchange (NYSE) submitted a proposal to the U.S. Securities and Exchange Commission (SEC) on behalf of Grayscale, requesting approval for staking features within spot Ethereum ETFs. The move was initially seen as ambitious, given the SEC’s historical caution toward staking-related products.
However, recent discussions involving blockchain stakeholders such as Jito and Multicoin Capital have signaled that regulators are increasingly reconsidering staking as a legitimate component of exchange-traded products (ETPs).
The SEC’s gradual shift in stance reflects a broader acceptance of complex crypto instruments under regulated structures. After approving spot Bitcoin and Ether ETFs, as well as options trading on certain Bitcoin ETPs, the regulator’s latest openness to staking represents another major step toward integrating decentralized finance mechanisms into mainstream markets.
Expanding Product Suite Beyond Staking
The staking-enabled funds are only part of Grayscale’s expanding ETF ecosystem. Recently, the company rolled out the Grayscale Ethereum Covered Call ETF (ETCO), an actively managed fund designed to generate yield by selling options tied to Ether. The ETF aims to deliver biweekly income distributions, mirroring Grayscale’s earlier Bitcoin covered call strategy.
In September, the SEC approved another milestone product — the Grayscale Digital Large Cap Fund (GDLC) — marking the first multi-crypto ETP in the U.S. The fund provides diversified exposure to Bitcoin, Ether, XRP, Solana, and Cardano, offering investors a basket-based approach similar to index funds in traditional markets.
Grayscale’s ambitions extend even further. The company has filed S-1 registration statements for spot Polkadot (DOT) and Cardano (ADA) ETFs, both structured as Delaware Statutory Trusts. It also revealed a forthcoming Dogecoin ETF, listed under the ticker GDOG, reinforcing its commitment to broadening investor access across leading blockchain ecosystems.
Record Inflows Reflect Soaring Investor Demand
Grayscale’s latest innovations come amid a surge of institutional interest in spot crypto ETFs. According to CoinShares Research, digital asset investment products saw record inflows of $5.95 billion last week — the largest weekly inflow on record. Bitcoin led the charge with $3.55 billion, followed by Ethereum at $1.48 billion, Solana with $707 million, and XRP attracting $219 million.
These inflows coincided with Bitcoin reaching an all-time high of $125,900 and Ether approaching its November 2021 peak nearing $4,700, underscoring the renewed market momentum driving institutional adoption.
A New Phase for U.S. Crypto ETFs
The introduction of staking within spot crypto ETFs not only diversifies investor returns but also enhances the underlying blockchain ecosystems. By committing assets to validator networks, Grayscale’s products could strengthen network decentralization and resilience, aligning investor incentives with the health of the protocols themselves.
The development follows Grayscale’s landmark court victory in 2023, which compelled the SEC to reconsider its denial of a Bitcoin ETF application. That ruling eventually paved the way for the approval of spot Bitcoin ETFs in January 2024 and Ether ETFs later that year, effectively reshaping the U.S. regulatory environment for digital assets.
With staking now entering the ETF landscape, Grayscale is positioning itself at the forefront of the next stage in crypto finance — one that merges yield generation, transparency, and institutional-grade access under the oversight of U.S. regulators.
As traditional and digital finance converge, the company’s expanding ETF suite could set the template for future blockchain-based investment vehicles — marking a decisive step toward mainstream integration of decentralized networks into regulated capital markets.
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