Grayscale wants to stake nearly all Ethereum in its staking ETF

Grayscale wants to stake virtually all of the Ethereum in its Staking Mini ETF once certain tax conditions have been met. The company is filing an amended trust agreement with the US securities regulator SEC. Staking rewards are converted into cash and paid out to shareholders at least four times a year.

Ethereum is available on OKX and Bybit.

In brief:

• Grayscale is amending the trust agreement for its Ethereum Staking Mini ETF to stake nearly all of its ETH.
• Staking rewards are paid out to shareholders in cash at least every quarter.
• Grayscale may charge a separate staking fee, the amount of which is yet to be announced.

Amended trust agreement filed with SEC

Grayscale is filing an amended trust agreement for its Ethereum Staking Mini ETF. With this change, the fund would be able to stake nearly all of its Ethereum, but only after specific tax conditions have been met. The application does not specify which conditions those are.

This concerns the Ethereum Staking Mini ETF, a fund specifically focused on generating returns through staking. Grayscale also has other ETF products on the market, including funds that combine Ethereum, BNB and Solana in a single basket.

Rewards go to shareholders, fee still unknown

The staking rewards earned by the fund are not stored as additional Ethereum but converted into cash. That distribution takes place at least once per quarter to the fund’s shareholders. This makes the product more attractive to investors looking for regular income from their crypto holdings.

Grayscale also notes that it may charge a separate fee for the staking service on top of the regular management fees. The company will announce the amount of that fee at a later date. At the time of writing, Ethereum is trading at $1.900, up 0.5% over the past 24 hours. Interest in Ethereum ETF products has clearly picked up recently.