## Ethereum ETF in the US Opens Path for Reward Distribution: Grayscale Ushers in a New Era

The market for exchange-traded Ethereum products in the United States reaches a turning point. For the first time, a spot crypto fund listed in the country distributes staking-generated returns directly to investors — a transformation that reflects the growing sophistication of digital products and the pursuit of onchain profitability.

### Industry figures in motion

The US spot Ether ETFs, which began operations in July 2024, have accumulated approximately **$9.6 billion in net inflows throughout 2024**. Today, these products collectively manage around **$18 billion in assets**, with BlackRock leading in volume — its ETHA holds approximately **$11.1 billion**, while Grayscale’s ETHE has about **$4.1 billion** and the Grayscale Ethereum Mini Trust manages around **$1.5 billion**.

### Grayscale activates staking and distributes the first reward

Grayscale Investments, which manages approximately **$31 billion in assets**, enabled staking in its Ethereum funds on October 6, while the industry was still discussing the viability of this feature. Shareholders of the Grayscale Ethereum Trust (ETHE) and the Grayscale Ethereum Mini Trust (ETH) are now beginning to receive payments based on network validation rewards.

The first distribution marks the moment when ETHE holders receive approximately **$0.08 per share**, with deposits scheduled for Tuesday. The amount reflects holdings recorded at Monday’s close. Grayscale structured the process by converting staking rewards into US dollars, using institutional custodians and third-party validators.

### Why Grayscale’s structure allows staking while other funds still wait

A regulatory issue explains this advantage. Grayscale’s Ethereum funds operate outside the scope of the Investment Company Act of 1940, the statute governing most conventional ETFs in the US. This structural situation opens space for staking activities, although it also means these products do not enjoy the same regulatory protections offered to traditional ETFs.

### Industry movement toward staking

While Grayscale reaps the first fruits of this strategy, major asset managers are working to achieve the same capability. Fidelity, through the Cboe BZX Exchange, submitted a proposal in March to integrate staking into its Ethereum Fund. BlackRock, meanwhile, continues to strengthen its market position, registering an Ethereum ETF with staking capacity in Delaware in November — an administrative step signaling future launch intentions. This move would complement the iShares Ethereum Trust (ETHA), launched in July 2024, which currently does not include this feature.

ETHE shares rose about 2% in early trading, signaling market optimism about this new development.