Grayscale Stakes its Claim: Defaults to Ethereum Staking for All Assets
Grayscale has made significant changes to its Ethereum Staking Mini ETF (ticker: ETH), making staking the default option for virtually all assets managed by the fund. This move was announced four days before a key deadline set by the Internal Revenue Service (IRS) in November 2025, which allowed crypto funds to conduct staking without generating tax obligations at the fund level.
The new contract requires that rewards be converted to cash and distributed to shareholders at least quarterly, with monthly payments planned. This change goes beyond the IRS's requirements, which only mandate quarterly distributions.
Grayscale already has experience in this area, having activated staking within its spot crypto funds in October 2025. Since then, the Mini ETF has accumulated $27.3 million in net rewards, with an annualized return rate of 2.61% after fees.
The fund currently holds 839,556 ETH, with 80.8% already staked. The remaining 161,000 ETH serve as a reserve for redemptions, fees, and daily operations. However, the new agreement establishes that the trust must execute staking on 'all of the fund's ETH at all times,' except in limited cases.