U.S. investors in Ethereum ETFs can now receive staking rewards, thanks to Grayscale’s new functionality in its Ethereum Trust ETF (ETHE) and Ethereum Mini Trust ETF (ETH), with assets totaling $4.82 billion.

Grayscale has filed for staking approval with the SEC, utilizing institutional custodians like Coinbase and a network of validator providers for Ethereum staking, also planning to introduce staking to its Solana Trust.

Ethereum’s shift to proof-of-stake blockchain allows validators to lock up ETH and receive rewards, a more energy-efficient approach than proof-of-work. Grayscale’s Ethereum ETFs were among the first in the traditional financial market, converting to spot ETFs in 2021.

The lack of staking rewards in Ethereum ETFs has hindered adoption since their launch in 2017, but demand is growing due to Ethereum’s outperformance in the market, with a 156% surge in the past six months.

Grayscale CEO Peter Mintzberg sees staking as a first-mover innovation that delivers value to investors, positioning the company as a leader in digital asset-focused ETFs. Grayscale plans to expand staking to more products as the digital asset ecosystem evolves, potentially narrowing the gap with BlackRock’s dominance.

Read more at Yahoo Finance: Grayscale Ethereum ETFs Are First in US to Add Staking