Grayscale's Ethereum Staking Hits One-Year Milestone with $33.5M in Rewards

Grayscale, the first U.S. crypto issuer to launch Ethereum staking, marked its one-year anniversary with strong performance and significant rewards. On October 6, 2025, Grayscale introduced staking for its Ethereum products, including the Grayscale Ethereum Staking Mini ETF ($ETH) and the Grayscale Ethereum Trust ETF (ETHE). Over the past year, Grayscale's offerings outperformed all competing spot Ether ETPs, paid out over $33.5 million in net rewards, and maintained an average daily volume of $5.5 million. Notably, Grayscale charged one of the lowest staking fees among U.S. spot Ethereum ETPs.

The success of Grayscale's staking products is partly attributed to the 1933 Act, which allowed staking where 1940 Act funds were initially blocked. On October 7, 2024, approximately 32,000 ETH ($150 million) was staked. The first distribution was paid out on January 6, 2026, with ETHE paying $0.083178 per share, covering rewards from October to December 2025. Grayscale's unique structure, which reinvests net rewards back into the net asset value, has given it an edge over potential competitors like Fidelity and 21Shares.

Annualized Ethereum staking yields ranged from 3.5% to 4.2%, outperforming intermediate Treasuries and REIT averages. Grayscale's filings for December 31, 2025, showed ongoing distributions with third-party validators. The success of Grayscale's products has put pressure on exchanges and liquid staking tokens like Lido’s stETH and Rocket Pool’s rETH. As of early 2026, U.S. spot Ethereum ETFs topped $11.5 billion in assets.

Looking ahead, the SEC has yet to approve staking proposals for 1940 Act spot Ether ETFs, but Grayscale's precedent has sparked debate on custody, validator centralization, and accounting. Future rulings will depend on tax treatment and disclosures by validators. Key events to watch include the SEC’s ruling on staking for competitor ETFs, the possibility of in-kind creation, and standard reporting on reward performance. Grayscale's one-year benchmark yields will help assess performance and reward sharing, setting a new standard for Ethereum staking in the market.