Grayscale’s ETHE, ETH, and GSOL products will start offering staking rewards for Ethereum and Solana.
Summary
- Grayscale’s ETHE, ETH, and GSOL ETPs will start offering staking rewards
- The move will enable users to gain passive yield on their holdings
- Regulatory clarity enabled staking ETFs, but it introduces new risks
A major investment manager made a move that could fundamentally change how crypto ETFs work. On Monday, Oct. 6, Grayscale added staking capabilities to its Ethereum and Solana products. Specifically, this includes the Grayscale Ethereum Trust ETF, the Ethereum Mini Trust ETF, and the Grayscale Solana Trust.
Notably, the Grayscale Solana Trust now offers investors one of the only ways to access Solana (SOL) staking through the traditional market. What’s more, pending GSOL’s approval as an ETP, it is likely to become the first to offer Solana staking rewards.
“Staking in our spot Ethereum (ETH) and Solana funds is exactly the kind of first mover innovation Grayscale was built to deliver,” said Peter Mintzberg, Chief Executive Officer of Grayscale. “As the #1 digital asset-focused ETF issuer in the world by AUM, we believe our trusted and scaled platform uniquely positions us to turn new opportunities like staking into tangible value potential for investors.”
Grayscale offers Solana and Ethereum staking
Exchange-traded products offer traditional investors a safe and regulated way to hold digital assets. Still, combining these products with staking rewards has raised regulatory questions, some of which remain unresolved.
Specifically, reports suggest that the U.S. Securities and Exchange Commission remains cautious when it comes to staking ETFs. Despite an overall pro-crypto stance, in several cases the agency has delayed approval of such products.
According to Grayscale, ETFs with staking rewards give investors both exposure to the underlying asset and passive income. For Grayscale, digital assets are its primary focus, with the firm holding approximately $35 billion in assets under management.
