Grayscale Investments has declared the first-ever staking rewards distribution for a U.S.-listed spot crypto exchange-traded product, marking a milestone in the evolution of Ethereum ETFs and onchain yield integration.Shareholders of the Grayscale Ethereum Trust ETF (ETHE) will receive approximately $0.08 per share from the sale of staking rewards, with the cash payout scheduled for Tuesday. The distribution is based on fund holdings recorded at the market close on Monday. The payout stems from Ethereum staking rewards earned after Grayscale enabled staking for its Ethereum products in October.First U.S. spot crypto ETP to distribute staking incomeGrayscale activated staking for its Ethereum funds on Oct. 6, using institutional custodians and third-party validator providers. The move made ETHE and the Grayscale Ethereum Mini Trust ETF (ETH) the first U.S.-listed spot crypto ETPs to gain exposure to Ether staking rewards.Staking involves locking tokens on a proof-of-stake blockchain to validate transactions and secure the network in exchange for rewards. In Grayscale’s structure, staking rewards are converted to U.S. dollars and distributed as cash, rather than being paid out directly in Ether.Regulatory structure allows staking but differs from traditional ETFsGrayscale’s Ethereum funds operate outside the Investment Company Act of 1940, the primary statute governing most U.S. ETFs. This structural distinction allows the funds to engage in staking activities, though it also means they do not offer the same regulatory protections as conventional ETF products.Grayscale was founded in 2013 and sponsors a range of digital asset investment products. The firm manages approximately $31 billion in assets under management, according to company disclosures.ETHE shares were up around 2% in early trading, according to Yahoo Finance.U.S. Spot Ether ETFs and the Push Toward StakingWhile Grayscale is currently the only U.S.-traded fund issuing staking-linked payouts, several major asset managers are seeking regulatory approval to add staking features to their spot Ether ETFs.In March, Cboe BZX Exchange filed a proposed rule change with U.S. regulators to allow staking within the Fidelity Ethereum Fund, following a similar filing submitted in February for the 21Shares Core Ethereum ETF.In November, BlackRock registered a staked Ethereum ETF in Delaware — an early procedural step toward launching a staking-enabled product. The filing would complement its existing iShares Ethereum Trust ETF (ETHA), which launched in July 2024 and currently does not include staking.Ether ETF market overviewU.S. spot Ether ETFs began trading in July 2024, making 2025 the first full calendar year in which the products were available to investors. Over the year, Ether ETFs attracted approximately $9.6 billion in net inflows, according to Cointelegraph.According to CoinMarketCap, U.S. spot Ether ETFs collectively manage about $18 billion in assets.BlackRock’s ETHA is the largest, with roughly $11.1 billion in assetsGrayscale’s ETHE holds about $4.1 billionGrayscale Ethereum Mini Trust ETF manages around $1.5 billion