Grayscale Confirms First Dividend for Ethereum Staking ETF… First Among U.S. Spot Crypto ETPs

Grayscale, the largest digital asset manager in the U.S., has formalized the distribution of rewards for an Ethereum (ETH) staking-based exchange-traded fund (ETF).

On the 6th (local time), according to Cointelegraph, Grayscale said in a press release that "it has confirmed the staking reward distribution for the Grayscale Ethereum Trust ETF (ETHE)."

Accordingly, ETHE shareholders will receive approximately $0.08 per share, with the record date being holdings as of the close of trading on the 29th, and the payment date scheduled for the following day, Tuesday. The distribution will be made in cash obtained by selling Ethereum staking rewards. This is the first time that a spot crypto exchange-traded product (ETP) listed in the U.S. will pay profits generated from on-chain staking activity in the form of a cash dividend.

Grayscale began staking its Ethereum products on October 6 through institutional custodians and external validator providers. As a result, ETHE and the Grayscale Ethereum Mini Trust ETF (ETH) became the first U.S.-listed spot crypto ETPs to be indirectly exposed to Ethereum staking revenues. However, investors will receive the proceeds in U.S. dollars in cash rather than in Ethereum.

The reason this structure is possible lies in the legal framework of Grayscale's products. These ETFs are operated in a structure not subject to the Investment Company Act of 1940, the foundational U.S. ETF statute, so staking is allowed. However, this means different regulatory and investor protection frameworks apply compared to typical U.S. ETFs. Meanwhile, Grayscale, founded in 2013, currently manages approximately $31 billion in digital assets.