Grayscale Ethereum Staking ETF (NYSE:ETHE) has made its first distribution to shareholders, marking a significant milestone for U.S.-listed spot crypto exchange-traded products.
The firm announced that ETHE distributed proceeds from Ethereum staking rewards earned between Oct 6, 2025, and Dec. 31, 2025. Shareholders will receive $0.083178 per share, with the payout set for Tuesday, based on holdings as of the Jan. 5 record date.
This move is significant because it marks the first time a spot crypto ETP in the U.S. has distributed staking rewards to investors, indicating a gradual shift in how digital assets are offered in public markets. Until now, staking income, a key feature of Ethereum's proof-of-stake network, has mostly been unavailable to traditional ETF investors.
ETHE, along with Grayscale Ethereum Staking Mini ETF (NYSE:ETH), started staking Ethereum in October 2025 after regulatory clarity allowed issuers to join. Both funds were renamed on Monday to reflect their staking-enabled structure, moving away from their earlier "trust" branding. Earlier, both were called the Grayscale Ethereum Trust ETF and Grayscale Ethereum Mini Trust ETF, respectively.
Unlike traditional equity or bond ETFs, ETHE and ETH are not registered under the Investment Company Act of 1940. This distinction means they do not have the same investor protections as 40 Act funds and carry extra risks, such as price volatility, operational complexity and the potential for losing principal. While the funds hold Ethereum, investors do not directly own the underlying cryptocurrency.
The distribution itself comes from the sale of staking rewards rather than income from dividends or interest, showing how crypto-linked products continue to blur the lines between traditional asset classes. For investors, the payout may help cover management fees or tracking differences, although it does not change the overall risk tied to Ethereum's price movements.
Grayscale has indicated that staking distributions could become a regular feature for eligible products, depending on network conditions and regulatory factors. If this practice becomes more widespread, staking-enabled ETPs could change how investors view income generation in crypto portfolios, though investors should expect variability instead of predictability.
Read Next:
Photo: Tomasz Makowski on Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
