Grayscale Issues First US Ethereum ETF Staking Payout – $9.4M Cash, Yield War Next?

Grayscale has issued the first-ever staking rewards from a U.S.-listed spot crypto ETP, bridging on-chain yield with traditional financial products. In a press release dated January 5, 2026, the asset manager announced that its Ethereum Staking ETF (ETHE) will pay shareholders $0.083178 per share.

JUST IN: Grayscale pays out staking rewards to Ethereum ETF holders, marking the first time ETH staking yield is distributed inside a U.S. ETF. pic.twitter.com/vrlntOEAmr

— Jessica Gonzales (@lil_disruptor) January 5, 2026

The total payout will amount to approximately $9.4 million. The distribution covers rewards earned by the fund between October 6, 2025, and December 31, 2025. Grayscale sold the accrued ETH rewards and distributed the proceeds in cash, ensuring the fund’s underlying Ether holdings were not reduced.

As of press time, ETHE is trading around $26.47, while Ethereum (ETH) was priced at approximately $3,299.

“Distributing staking rewards to ETHE shareholders is a landmark moment, not just for Grayscale, but for the entire Ethereum community and ETPs at large,” stated Peter Mintzberg, CEO of Grayscale.

What It Means for U.S. Crypto ETFs

This distribution is a structural shift for crypto-based financial products in the U.S. It transforms a spot ETH ETF from a pure price-appreciation vehicle into a yield-bearing instrument within a regulated wrapper.

The cash-based payout model simplifies tax reporting for institutional and retail investors, treating the reward more like a conventional dividend. This development could attract a new class of income-focused investors who were previously unable or unwilling to engage with on-chain staking directly.

The move establishes a competitive benchmark. Competitors like BlackRock and Fidelity are actively exploring adding staking to their own Ethereum ETF products. BlackRock registered a staked Ethereum trust in November 2025, and Fidelity has also filed to add staking capabilities to its fund. This sets the stage for a potential “yield war” among ETF issuers as they compete for assets under management.