Grayscale Makes Staking Default in Ethereum ETF Amid Competitor Pressure

Grayscale, a well-known crypto fund manager, has made significant changes to its Ethereum Staking Mini ETF (ticker ETH). The company signed a new trust agreement on August 6, which aims to shrink the pile of idle Ether (ETH) in the fund from approximately 161,000 tokens. This change makes staking the default for nearly every coin held by the fund, with regular cash payouts guaranteed to shareholders.

The new agreement ensures that rewards are converted to cash and paid out on a monthly basis. Additionally, the trust will engage in staking with respect to all of its Ether at all times, except for specific carve-outs related to fees, redemptions, and network emergencies.

Grayscale has already demonstrated success with staking, earning $27.3 million in net rewards since October 2025. The fund currently holds 80.8% of its 839,556 ETH in staked positions, leaving a buffer of around 161,000 tokens for redemptions and daily operations.

The market is taking notice, with competitors like Morgan Stanley launching Ethereum and Solana funds at lower fees. Institutions are also shifting towards staked Ethereum products, such as Intesa Sanpaolo.