Grayscale Unveils First Ether Staking ETP as ETH Approaches All-Time High

In a groundbreaking move, Grayscale Investments, the world’s largest cryptocurrency asset manager, has launched the first Ether staking exchange-traded fund (ETF) in the United States. This innovative step promises to reshape investment opportunities for Ethereum enthusiasts and institutional investors alike.

On Monday, Grayscale announced a significant development: two of its Ethereum ETFs, the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF (ETH), are now set up to enable staking. This positions them as the first U.S.-listed spot crypto exchange-traded products to offer this enticing feature. Additionally, the company has rolled out staking for its Grayscale Solana Trust (GSOL), which is currently traded over-the-counter and awaiting regulatory approval.

These two Ether funds cater to distinct investment preferences. The ETHE fund is tailored for investors seeking cash flow through distributions, while the ETH fund will reinvest staking returns into net asset value (NAV), allowing for compounding over time. This innovative offering reflects Grayscale’s commitment to providing flexible investment solutions for various investor goals.

At Grayscale, you can now choose how you want to experience Ethereum staking. $ETHE will pay distributions for those who like cash flow, while $ETH will roll staking returns into NAV so they can compound over time. Different goals, same platform.https://t.co/LtGJWGpxXP

— Grayscale (@Grayscale) October 6, 2025

The introduction of these ETFs is poised to provide increased staking yields, potentially making them more attractive than traditional spot crypto funds, including Bitcoin ETFs. Staking will be facilitated through institutional custodians and validator providers, ensuring that the underlying blockchain protocols are securely maintained.

Grayscale is not stopping with these two funds; the company has plans to broaden its staking offerings across more products. They are also committed to educating users about how staking works, further expanding the awareness and understanding of the crypto staking landscape.

“Staking in our spot Ethereum and Solana funds is exactly the kind of first-mover innovation Grayscale was built to deliver,” said Peter Mintzberg, CEO of Grayscale.

Despite launching with considerable hype, the Grayscale ETHE fund has experienced some challenges, seeing $4.5 billion exit since its inception, primarily due to higher fees compared to competitors like BlackRock (ETHA) and Fidelity (FETH). However, the smaller mini-trust (ETH) has drawn interest, showcasing total inflows of $1.5 billion.

This move towards staking could lead to a ripple effect, where major ETF issuers may soon follow Grayscale’s lead, incorporating staking features into their offerings in response to evolving investor preferences.

As of now, around 35.7 million ETH, valued at approximately $167 billion, represent about 30% of Ethereum’s total supply staked. However, it’s worth noting that the entry queue for unstaking is considerable, with around 2.5 million ETH currently waiting to be unstaked.

Coinciding with Grayscale’s launch, Ethereum’s price has been on an upward trajectory, recently reaching a three-week high of $4,734 on Monday. It has since moderated to around $4,680 during Tuesday morning trading in Asia, putting ETH approximately 5.4% below its all-time high from August.

Critics and analysts believe the market has entered a phase ripe for expansion. One analyst, known as ‘Merlijn the Trader,’ noted, “Ethereum’s liquidity reset is complete,” suggesting that the recent price sweeps below $4,000 could be seen as a strategic ‘reload zone.’ Predictions indicate ETH might soar between $10,000 to $14,000 in the current cycle, further fueling excitement in the crypto space.