- Giant digital asset manager Grayscale announced the launch of staking features in its crypto ETFs.
- Its Ethereum-based spot ETFs have become the first ETPs in the US to have crypto staking features and the second to offer the same function in the Solana ETF category.
Grayscale, a digital asset management company, has recently broken the mold in spot cryptocurrency exchange-traded funds (ETFs). On Monday, the subsidiary of Digital Currency Group announced the launch of the first-ever US-listed spot Ethereum (ETH) ETFs with staking features via a press release. It is also expected to be the second issuer of spot Solana (SOL) ETFs in the country, following Rex-Osprey’s SOL + Staking ETF (SSK).
The latest development means Grayscale Ethereum Trust ETF (ETHE), Grayscale Ethereum Mini Trust ETF (ETH), and Grayscale Solana Trust (GSOL) owners will now have more ways to earn from their holdings. Initially, they can only profit through the price appreciation of their shares in the investment products upon sale. However, the new staking feature unlocks passive income simply by maintaining their exposure to ETHE, ETH, and GSOL via the exchange-traded products (ETPs).
Grayscale Crypto EFTs with Staking Features
Grayscale explained it will stake the underlying assets of the ETFs, namely ETH and SOL, on-chain to earn yields and help secure the respective infrastructures of their blockchain networks. From there, holders of the ETFs related to the assets can enjoy their share of the staking rewards.
The company clarified, though, that it will integrate the staking rewards in the crypto ETFs’ net asset value (NAV). It pointed out that the measure aims to maintain tax efficiency.
First-Mover Advantage
Peter Mintzberg, Chief Executive Officer of Grayscale, highlighted their first-mover advantage in the US after the rollout of the nation’s first US ETH ETFs and second SOL ETF with staking. This early entry into the niche gives the company a competitive edge in building customer loyalty and brand exposure, allowing it to secure a significant market share before more competitors launch their crypto ETPs.
“Staking in our spot Ethereum and Solana funds is exactly the kind of first mover innovation Grayscale was built to deliver,” said Mintzberg. “As the #1 digital asset-focused ETF issuer in the world by AUM (assets under management), we believe our trusted and scaled platform uniquely positions us to turn new opportunities like staking into tangible value potential for investors.”
Furthermore, Grayscale claimed it plans to expand its staking to additional crypto ETPs in the foreseeable future.
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