Grayscale's Mini ETF Stakes Majority of Ether Holdings

Grayscale's Ethereum Staking Mini ETF has staked nearly 80.8% of its Ether holdings, earning a gross staking reward of around 2.78%. The fund, which trades under the ticker ETH, launched on July 23, 2024, with a management fee of just 0.15%. Grayscale plans to convert these rewards into cash and distribute them to shareholders on a quarterly basis.

The Mini ETF abstracts the complexities of staking Ether, which requires technical knowledge, capital lockup, and operational risks, making it inaccessible to many investors. The fund's larger counterpart, the Grayscale Ethereum Trust (ETHE), made history in January 2026 by executing the first-ever US staking payout.

Staking rewards are treated as ordinary income for US holders, with a two-layer tax event: ordinary income on receipt and potential capital gains or losses on conversion. The quarterly structure helps create regular taxable events.