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- Grayscale completes the first U.S. staking reward payout through a spot crypto ETP.
- ETHE shareholders receive a cash distribution tied to Ethereum staking income.
- The move signals a shift toward investor returns from on-chain activity.
According to a press release, Grayscale has reached a major milestone in the U.S. digital asset market. The firm announced that its Ethereum Staking ETF, trading under the ticker ETHE, has issued a cash distribution to existing shareholders.
The distribution represents the staking rewards earned by the fund over a specific period. The move represents the first time a spot crypto exchange-traded product listed in the U.S. market will distribute staking rewards directly to investors. The staking rewards will represent the period from October 6, 2025, through December 31, 2025.
Grayscale exchanged those rewards and turned them into distributable proceeds. Shareholders will be paid a sum of 0.083178 dollars for each ETHE stock they held on the record date. The payment date is January 6, 2026, and it applies to holders on January 5, 2026.
Grayscale Links Staking to Regulated Markets
This distribution creates a new trend for crypto investment products in the United States. Spot crypto ETPs have historically followed prices in assets. They generally provided little income beyond prices. Staking rebalances this.
Ethereum enables people to earn rewards through participation in the security of the network. Grayscale has now associated this with a regulated trading vehicle. The company launched staking for its Ethereum products last October 2025. This action made ETHE and its smaller counterpart the first of its kind within the country.
Both of these products got a new name in January of 2026. This was in a move to ensure that their new status as staking-enabled vehicles is depicted. ETHE and ETH are exempt from the Investment Company Act of 1940. They lack the regulatory protection of a mutual fund or an ETF.
Investors Face Risks Despite New Ethereum Yield
However, the investors will be subjected to risks such as market risk, custody risk, and the risk of losing their capital. The funds invest in Ether but do not represent ownership of the underlying asset. Despite the constraints, the distribution offers a new return channel. There is an introduction of a new yield element through staking rewards.
Investors can now see the real-world monetary effects of blockchain activity without the hassle of dealing with or managing the validators and the infrastructure. Grayscale classifies this development as a platform shift. The company is set to scale its staking expansion to various digital assets.
“However, the aim is all about accessibility and transparency as blockchain technology evolves. The overall market is still developing. It is a trend that more investors will be looking towards generating yield on their digital assets, as opposed to looking solely at volatility. This initial distribution may inform what happens in the future regarding ETPs in the crypto market.”
This also highlights the fact that innovation on the network level could result in traditional market formats. Grayscale has managed to create shareholder value out of staking rewards. This could set the tone for what is expected out of crypto investment products within the United States.
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