The move allows holders of both products to earn staking rewards directly within their ETFs, either as reinvested gains or as cash payouts.
Grayscale said the dual-option model was designed to attract investors with different goals, including long-term compounding for those who prefer growth and direct income for those seeking liquidity.
Crypto staking allows participants to lock their tokens to validate transactions and earn rewards. However, regulatory uncertainty kept US institutions from fully participating for years.
As a result, ETF issuers reacted by removing staking options from their products to minimize compliance risks.
The shift, paired with a friendlier tone toward crypto under the Trump administration, has encouraged asset managers like Grayscale to reintroduce staking within their regulated investment structures.
Staking yields, which average around 3.2%, may enable issuers to offset operating costs by staking a portion of their assets, potentially reducing management fees that can reach 2.5%. These lower fees could make ETH ETFs more competitive and increase adoption among institutional clients.
As of press time, about 36 million ETH, roughly 30% of Ethereum’s total supply, is staked, with Lido controlling 23% of that market.
