Grayscale’s ETHE Shatters Barrier: First U.S. Spot Ethereum ETP to Pay Real Staking Rewards Directly to Investors

Wall Street's crypto playbook just got a major rewrite. Forget synthetic yields or vague promises—Grayscale's Ethereum Trust (ETHE) is now cutting checks directly from the blockchain's core engine.

The Staking Breakthrough

ETHE morphs from a passive holding vehicle into an active income generator. The fund now captures and distributes the tangible rewards earned from validating the Ethereum network—a first for any U.S.-listed spot Ethereum product. It bypasses the traditional finance wrapper, delivering crypto-native yields straight to shareholder accounts. This isn't a derivative or an IOU; it's the real ETH, earned on-chain and passed through.

Why This Changes the Game

The move demolishes a key objection from institutional skeptics: that crypto ETPs offered exposure without utility. Now, the asset works for you inside the wrapper. It turns a speculative vehicle into a productive one, aligning the fund's mechanics with the fundamental value proposition of proof-of-stake networks. Expect pressure on competitors to follow suit or risk looking obsolete.

The New Yield Play

For advisors and funds shackled by compliance, this is a backdoor into decentralized finance. It offers a compliant path to Ethereum's staking yield—a revenue stream once reserved for the tech-savvy or those willing to navigate self-custody. Suddenly, a Treasury bill alternative with a crypto risk profile lands on the menu, complete with a tidy ticker and quarterly statements.

The move is a masterstroke in product evolution, proving that even within the legacy system's plumbing, crypto finds a way to pay—both a literal dividend and a metaphorical one for the asset class's maturation. Of course, the fees will still make a traditional banker blush, but at least you're getting something for them now.

First U.S. Ethereum ETP to pass through staking income

The company states that shareholders included in the record as of Jan. 5, 2026, shall be entitled to collect $0.083178 per share of ETHE. The distribution date is January 6, 2026. The payout was financed by the sale of staking rewards that the fund had earned during the covered period, rather than any reduction or increase in the principal Ether holdings of the fund.

Although staking has been an essential part of Ethereum’s proof-of-stake system since its inception, it had only been included in U.S.-listed ETFs as of late 2025. Grayscale enabled staking on its Ethereum products in October 2025.

Today, Grayscale Ethereum Staking ETF (Ticker: $ETHE) became the first U.S. Ethereum ETP to distribute staking rewards back to investors.

Note: $ETHE is trading ex-dividend today as of the open.

Read the press release: https://t.co/oDOSk9B2pG

— Grayscale (@Grayscale) January 5, 2026

ETHE and ETH are formally organized as exchange-traded products and are not registered under the Investment Company Act of 1940. Consequently, they are not regulated under the same regulations as 40 Act-registered ETFs and mutual funds. Grayscale has indicated that investing in these products is a high-risk venture, which may result in a loss of the amount invested. 

Grayscale’s fund structure, record dates, and distribution mechanics

The staking issuance is only levied on the proceeds realized within the accrued period, and it has no certain payout schedule. Grayscale issued no press release regarding its future distribution rate or yield expectations for future staking activity.

ETHE was ex-dividend at the beginning of the market on Monday. Thus, investors who purchase shares between the market opening on Monday and after the market opens will not receive their payout at this time.

Grayscale added that the distribution will be in accordance with the tradition of the financial markets, and the staking income will be deposited in the FORM of exchange-traded securities. The company further guaranteed that holdings of Ether of the funds remain unchanged, except that staking rewards were required to be sold to cover the distribution.

Product renaming and staking-enabled lineup

In conjunction with the staking distribution, Grayscale has also undertaken a naming exercise for its staking-enabled products based on its new organizational structure. Grayscale Ethereum Trust ETF was changed to Grayscale Ethereum Staking ETF, under the same ticker, ETHE. Similarly, the Grayscale Ethereum Mini Trust ETF is currently trading under the name Ethereum Staking Mini Ethereum ETF, and the ETF is listed under the ticker symbol “ETH”.

The latter also confirmed that its Solana-based product is now known as the Grayscale solana Staking ETF (ticker: GSOL) and that its staking products adhere to a set of naming conventions.

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