Grayscale Launches ETH Staking ETFs as Ethereum Price Hits $4,700

Grayscale

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  • Grayscale staked 32,000 ETH in ETHE and ETH ETFs on launch day.
  • Initial inflows lagged behind BlackRock, highlighting competitive ETF landscape.
  • Ethereum price jumped 4%, signaling potential new all-time highs.

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Grayscale has officially rolled out its Ethereum staking facility for its two spot ETFs, ETHE and ETH, on October 6. On day one, the firm staked 32,000 ETH—worth roughly $150 million—across both funds, marking a significant milestone for the Ethereum investment landscape. This launch allows investors to earn staking rewards through a single, regulated platform, further enhancing the appeal of Grayscale’s ETFs.

The Grayscale Ethereum Trust (ETHE) will provide staking rewards as cash payouts for investors seeking regular income, while the Ethereum Mini Trust (ETH) will reinvest returns into its net asset value (NAV), offering compounded growth. This strategic differentiation aims to cater to both income-focused and long-term growth investors.

Initial ETF Inflows Lag Behind Competitors

Despite the innovative staking option, Grayscale’s ETFs saw relatively modest inflows on launch day. ETHE drew $14.8 million, and ETH attracted $18.7 million, falling behind competitors such as BlackRock and Bitwise. BlackRock’s iShares Ethereum Trust (EHTA) led the market with $92 million in inflows, demonstrating continued strong institutional appetite for Ethereum exposure.

BlackRock’s spot ETH ETF recorded net inflows of 18,959 ETH on the same day, with total trading volume reaching $2 billion. Its share price surged 4.47% to $35.79, pushing assets under management above $18.5 billion and reinforcing its market dominance.

ETH Price Reacts Positively to Staking Launch

Ethereum’s price responded quickly to the news, climbing 4% to trade above $4,707. Analysts suggest that this momentum could mark the start of a larger rally, potentially pushing ETH toward new all-time highs. Market watchers see the combination of ETF staking capabilities and institutional demand as key drivers for Ethereum’s near-term growth.

A Step Toward Broader Adoption

Grayscale’s ETH staking launch positions the firm at the forefront of crypto ETF innovation. While initial inflows were modest, the staking facility strengthens long-term investment options for both retail and institutional investors. Combined with Ethereum’s recent price surge, this move could accelerate adoption and attract greater capital to the crypto market.

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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.