Grayscale Files Amended Trust to Enable Ethereum Staking in Its Mini ETF

Grayscale has filed an amended trust agreement for its Ethereum Staking Mini ETF that enables staking of substantially all of the fund's ether holdings. This move opens a path to staking and rewards would flow back to shareholders as quarterly cash distributions.

The amendment kicks in only after specified tax conditions are satisfied, which Grayscale is waiting for clarity from the IRS or Congress on. The trust itself would bear the taxation burden as ordinary income rather than passing through a more complex tax event to holders.

This move pressures competitors that have not offered staking inside the ETF wrapper due to operational and tax headaches. If the Mini ETF can run staking at scale, it will produce a higher total return than identical products that do not stake.