-
Grayscale’s ETHE became the first U.S. Ethereum product to distribute staking rewards to shareholders in cash form.
-
Each eligible ETHE share received $0.083178, funded by selling staking income while keeping Ether holdings intact.
-
The renamed Ethereum Staking ETFs lack 1940 Act protections, and future staking payouts remain uncertain.
A first-of-its-kind payout reached U.S. investors on Monday, January 6, 2026, after Grayscale issued staking rewards through its Ethereum product. Grayscale, the issuer, distributed proceeds to shareholders after selling staking income generated by the fund.
First U.S. Ethereum ETP to Distribute Staking Rewards
According to Grayscale, the Ethereum Staking ETF, trading as ETHE, completed a cash distribution to eligible shareholders. The payout covered staking rewards earned between October 6, 2025, and December 31, 2025. Shareholders of record as of January 5, 2026, qualified for the distribution.
Notably, each eligible share received $0.083178. Grayscale funded the payment through the sale of staking rewards, not through Ether holdings. As a result, the fund’s principal Ether balance remained unchanged. ETHE traded ex-dividend at the market open on Monday.
Structure, Risks, and Distribution Mechanics
ETHE and its related product, ETH, operate as exchange-traded products. However, they are not registered under the Investment Company Act of 1940. Therefore, they do not carry the same protections as registered ETFs or mutual funds.
Grayscale stated that staking payouts have no fixed schedule. Moreover, future distribution amounts remain uncertain. The firm confirmed that staking proceeds alone financed the payment. Ether holdings only changed to the extent required to execute the distribution.
Product Renaming and Broader Ethereum ETF Context
In January 2026, Grayscale renamed its Ethereum products to reflect staking functionality. Grayscale Ethereum Trust ETF became Grayscale Ethereum Staking ETF, retaining the ETHE ticker. Similarly, the Ethereum Mini Trust ETF now trades as Ethereum Staking Mini ETF under ticker ETH.
According to Bloomberg Intelligence analyst James Seyffart, U.S. Ethereum ETFs hold nearly $19 billion in assets. This figure follows earlier outflows after October 10. However, institutional accumulation has continued alongside the recovery.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Wintermute CEO: Will Continue Holding ETH and Supporting Ethereum's Long-Term Vision
Wintermute CEO Evgeny Gaevoy expressed more criticism than celebration of the Ethereum Foundation's mission statement, believing it can sustain the cypherpunk dream. He noted that the impact on ETH price in the short term is limited, with long-term results depending on goal achievement. He will continue to hold ETH for cultural and meme reasons.
GateNews2h ago
Analyst: BlackRock Launches Staking Ethereum ETF Solo to Avoid Punitive Impairment Risk
BlackRock's staking Ethereum ETF attracted approximately $46 million in funding within two days of its launch, holding spot ETH and staking 70%-95% of ETH through CEX. Investors can receive approximately 82% of staking rewards monthly, with remaining rewards going to BlackRock and service providers. The fund's non-compounding design attracts large investors, and BlackRock chose to launch the staking ETF independently to mitigate risks.
GateNews2h ago
MoonPay introduces native hardware signature support for AI agent tools
MoonPay announced on March 15 the introduction of hardware signing support for its AI agent tool, allowing transaction strategies to be executed across multiple blockchains, with users required to confirm transactions through Ledger devices to ensure private key security.
GateNews3h ago
ShapeShift founder spent 17.75 million USDT to buy 8,576 ETH over the past 5 days
Gate News reported on March 15 that according to Lookonchain monitoring, ShapeShift founder Erik Voorhees has resumed buying ETH after a year of inactivity. Over the past 5 days, he has spent 17.75 million USDT to purchase 8576 ETH. Currently, Erik Voorhees still holds 26.77 million USDT and may continue to purchase more ETH.
GateNews4h ago
DWF Labs: Traditional Altseason Coming to an End, Institutional Capital Shifting to BTC, ETH, and RWA
Andrei Grachev from DWF Labs points out that the traditional "altseason" is gradually disappearing due to structural changes in the crypto market. Institutional capital increasingly favors Bitcoin and Ethereum, exposing altcoins to higher risks and capital outflows. Over the past 13 months, altcoin market capitalization has declined by over $209 billion.
GateNews6h ago
