Grayscale Investments, one of the world’s largest digital asset managers, has staked $150 million worth of Ether (ETH) just days after becoming the first U.S.-based fund issuer to introduce staking rewards for its exchange-traded products (ETPs).

According to blockchain analytics firm Lookonchain, Grayscale transferred 32,000 ETH — valued at around $150 million — to a staking contract on Monday, one day after the company unveiled its new staking-enabled ETP structure.

Related reporting: Crypto Funds See $812M Outflows, But Solana Defies Trend With $291M Inflows

The move marks a significant shift in the digital asset fund landscape, enabling institutional and retail investors in Grayscale’s Ethereum products to earn passive staking income directly through regulated investment vehicles.

Under the company’s ETP Staking Policy, staking rewards generated from the locked Ether will be classified as assets of the fund. After deducting sponsor and custodian fees, shareholders of the Grayscale Ethereum Trust ETF (ETHE) will receive up to 77% of the total staking rewards, while holders of the Grayscale Ethereum Mini Trust ETF (ETH) will earn as much as 94%, based on fee structures outlined in recent SEC filings.

Grayscale’s Ether-based products are registered under the Securities Act of 1933, making them exchange-traded products (ETPs) rather than traditional exchange-traded funds (ETFs) governed by the Investment Company Act of 1940. This distinction allows the firm greater flexibility in incorporating on-chain yield strategies while maintaining regulatory compliance.

The introduction of staking-enabled ETPs reflects Grayscale’s strategic focus on bridging decentralized yield opportunities with mainstream financial products — a move that could set a precedent for other U.S. asset managers.

A Pivotal Month for Altcoin ETP Decisions

October is shaping up to be a critical month for the cryptocurrency industry, with the U.S. Securities and Exchange Commission (SEC) expected to decide on as many as 16 crypto-related ETP applications, including several that incorporate staking features.

Among these are 21Shares’ Core Ethereum ETF (TETH), which is awaiting an SEC decision on October 23, and BlackRock’s iShares Ethereum Trust (ETHA) amendment, scheduled for review on October 30, which seeks approval to include staking rewards within its ETP framework.

Both applications, like Grayscale’s, are registered under the Securities Act of 1933, reflecting the growing trend of firms favoring the ETP structure over traditional ETF models to align with existing U.S. securities laws.

Meanwhile, the REX-Osprey Solana Staking ETF, launched in July under the Investment Company Act of 1940, remains the first staking-enabled ETF to focus on Solana (SOL). The product allows investors to hold Solana directly and receive staking yield distributions.

Source: Lookonchain

Grayscale’s Solana Trust (GSOL) has also introduced staking and is now awaiting regulatory clearance to transition into a fully tradable ETP — a move that could further expand institutional access to staking-based digital asset products.

Regulatory Delays Amid Government Shutdown

However, the SEC’s response timeline may face delays due to the ongoing U.S. government shutdown, now entering its second week. The agency confirmed it is operating with “extremely limited staff” under “modified conditions,” prioritizing only essential market surveillance and enforcement duties until Congress passes a new funding bill.

With the Senate scheduled to reconvene on Tuesday following multiple failed negotiations, uncertainty around the shutdown has pushed many investors toward decentralized assets and crypto funds as a hedge against traditional financial instability.

According to Cointelegraph, crypto ETPs recorded their largest-ever inflows last week, with nearly $5.95 billion entering the sector following the start of the government funding impasse — signaling renewed confidence in digital assets amid fiscal turbulence.

Crypto ETP flows by asset as of Friday (in millions of US dollars). Source: CoinShares