Grayscale Investments has made a groundbreaking announcement, launching the first Ether staking exchange-traded fund (ETF) in the United States. This initiative, introduced on October 6, 2025, has made the Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH) pioneering products in the realm of U.S.-listed crypto exchange-traded products that allow staking.

The newly launched funds are crafted with distinct investment priorities. The ETHE aims to provide cash distribution for investors seeking liquidity, whereas the ETH will accumulate staking returns into the net asset value (NAV), allowing for compounding growth over time.

“At Grayscale, you can now choose how you want to experience Ethereum staking. $ETHE will pay distributions for those who like cash flow, while $ETH will roll staking returns into NAV so they can compound over time. Different goals, same platform.[source]" – Grayscale (@Grayscale)

The introduction of these products is expected to enhance the attractiveness of staking compared to standard crypto funds, such as Bitcoin ETFs. They will facilitate passive staking execution through institutional custodians and validator service providers.

Moreover, Grayscale intends to extend staking capabilities to additional products while releasing educational resources regarding staking mechanics.

Ethereum Staking Maintains Robustness

Currently, there are approximately 35.7 million ETH, worth about $167 billion, staked, which represents around 30% of the total Ether supply. However, there remains a significant backlog as roughly 2.5 million ETH are in waiting for the unstaking process.

Grayscale’s Fund Performance

Since its inception, the Grayscale ETHE fund has seen a significant outflow of $4.5 billion due to its relatively higher fees compared to competitors like BlackRock (ETHA) and Fidelity (FETH). Fortunately, the smaller fund, the Ethereum Mini Trust (ETH), has garnered inflows totaling $1.5 billion.

As Ether inches closer to its all-time high, having reached a recent peak of $4,734, it has slightly retracted to $4,680, leaving it just 5.4% shy of its historical maximum from August.

“Ethereum’s liquidity reset is complete,” asserted analyst Merlijn the Trader, predicting a bullish run that could see ETH reach between $10,000 and $14,000.

In conclusion, Grayscale’s innovative launch sets a significant precedent in the crypto space, echoing a trend likely to be followed by major ETF issuers.