Grayscale Prepares to Stake Ether Holdings

Cryptocurrency asset manager Grayscale is preparing to stake part of its massive Ether holdings, which may indicate confidence in US regulators permitting staking within exchange-traded products soon.

Onchain data from Arkham Intelligence showed Grayscale transferred over 40,000 Ether (ETH) on Thursday, demonstrating positioning for staking rewards. If confirmed, Grayscale would be the first US Ethereum ETF sponsor to stake its holdings.

Source: Emmett Gallic

Grayscale’s Ethereum Trust (ETHE) currently manages over 1.06 million ETH, worth more than $4.8 billion. Launched in 2017 as a private placement vehicle, Grayscale introduced the lower-cost Ethereum Mini Trust (ETH) in 2024 through a partial spin-off of ETHE’s assets.

This development follows the US Securities and Exchange Commission’s (SEC) decision to delay rulings on whether Grayscale funds can include ETH staking. Recently, the SEC provided clarity, suggesting some forms of liquid staking may not fall under its jurisdiction, potentially allowing regulated funds to adopt staking.

Grayscale has submitted proposals to enable staking, but SEC approval is still pending — indicating the firm may be positioning ahead of a ruling. Currently, no existing spot Ether ETFs incorporate staking features.

The Arkham-tracked transfer occurred a day after the SEC approved the Grayscale Digital Large Cap Fund, a multi-asset crypto ETP providing exposure to Bitcoin (BTC), Ether, XRP (XRP), Solana (SOL), and Cardano (ADA). This product offers investors diversified crypto exposure without directly purchasing individual tokens.

ETH Staking ETF Could Be a Market Game-Changer, Analysts Say

Analysts assert that the approval of staking within US spot Ether ETFs might ignite institutional demand, allowing investors to earn rewards instead of merely holding the asset. 10x Research head Markus Thielen noted in July that staking for Ethereum ETFs could significantly reshape the market.

This discussion arises as the demand for Ether increases. Spot ETF inflows have surged this year, while the total ETH held on exchanges fell to a three-year low in early September — a decline attributed to corporate treasuries and ETFs absorbing supply.

Ether exchange reserves across all crypto exchanges. Source: CryptoQuant

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