Milestone for spot crypto funds
This marks a big change for how crypto products fit into traditional finance (TradFi). It gives investors a chance to take part in network validation and earn staking rewards without having to directly hold any digital assets. By staking, they can benefit from the long-term growth of the Ethereum (ETH) and Solana (SOL) networks, while ETHE and ETH still offer spot exposure to Ether, and GSOL offers the same for Solana.
Grayscale also made it clear that ETHE and ETH are not registered under the Investment Company Act of 1940, which means they don’t follow the same rules and protections as ETFs or mutual funds regulated under that law. Investments in these products carry significant risk, including possible loss of principal. GSOL, meanwhile, remains an OTC-traded trust rather than an exchange-traded product.
“Staking in our spot Ethereum and Solana funds is exactly the kind of first mover innovation Grayscale was built to deliver,” said Peter Mintzberg, CEO of Grayscale Investments.
“As the #1 digital asset-focused ETF issuer in the world by AUM, we believe our trusted and scaled platform uniquely positions us to turn new opportunities like staking into tangible value potential for investors.”
The company said staking will be conducted passively through institutional custodians and a diversified network of validator providers. It also released a new report, Staking 101: Secure the Blockchain, Earn Rewards, explaining how staking works and its role in blockchain security.
What’s next?
Grayscale said it plans to bring staking to more of its investment products over time as part of its wider effort to bridge blockchain technology with TradFi instruments.
The move shows how much the landscape is changing. Staking, once something only active crypto users bothered with, is now making its way into regulated investment products. It’s a sign of how the gap between TradFi and crypto is starting to blur, and many believe it could make staking easier for big institutions to adopt as it edges closer to the mainstream.