Grayscale Puts Idle ETH to Work, Staking Now Default Option
Grayscale has made a significant move in its Ethereum Staking Mini ETF (ticker: ETH) by amending its trust agreement to make staking the default option for nearly all of its funds. This change was announced four days before the expiration of a key deadline set by the Internal Revenue Service (IRS). According to the new contract, rewards will be converted to cash and distributed to shareholders at least quarterly, with monthly payments planned.
The fund has already accumulated $27.3 million in net rewards since October 2025, with an annualized return rate of 2.61% after fees. As of August 6, Grayscale had staked 80.8% of its 839,556 ETH, leaving 161,000 ETH idle as a reserve for redemptions, fees, and daily operations.
The new agreement establishes that the trust must execute staking on 'all of the fund's ETH at all times,' with limited exceptions to cover operational needs. This move is seen as a response to competitive pressure in the market, with Morgan Stanley launching Ethereum and Solana funds with a fee of just 0.14%, below the 0.15% charged by Grayscale.