The First US Crypto Fund To Pay Staking Rewards Is Also Staring At $5 Billion In Outflows

• Grayscale's Ethereum Trust is the first U.S.-listed crypto ETF to pass staking income to investors.
• ETHE is also the only Ethereum ETF with cumulative net inflows in the red, amounting to nearly $5 billion.
• ETHE’s payout covers staking rewards earned between October and December 2025.

Grayscale Ethereum Trust (ETHE) became the first crypto product to roll out staking rewards for its holders on Monday as Ethereum (ETH) rallied alongside the broader cryptocurrency market.

Shareholders will receive $0.083178 per ETHE share held. The distribution will be paid on Tuesday to investors who held shares as of the record date on January 5, according to Grayscale.

According to data on SoSoValue, ETHE is the only Ethereum fund with cumulative net inflow in the red, amounting to nearly $5 billion. Even on Monday, the fund lagged behind its peers with net inflow of $1.32 million while BlackRock’s ETHA clocked $102 million and Fedelity’s FETH saw $21 million. 

Ethereum Price On The Rise

The fund rose 3.6% in regular trading but was edging 0.91% lower in after-hours trading despite Ethereum’s price rising. On Stockwits, retail sentiment around Grayscale’s ETF improved to ‘neutral’ from ‘bearish’ over the past day as chatter also ticked higher to ‘normal’ from ‘low’ levels.

Meanwhile, Ethereum’s price rose 1.8% in the last 24 hours to over $3,200. The leading altcoin remains more than 35% below its record of nearly $5,000 seen in August last year, according to CoinGecko data. On Stocktwits, retail sentiment around ETH trended in ‘bullish’ territory over the past day as chatter rose to ‘high’ from ‘normal’ levels.

How the ETHE Distribution Works

The distribution reflects staking rewards earned by the fund and then sold, with the cash proceeds being returned to shareholders. The structure is similar to income-style distributions seen in traditional ETFs, but with a yield component tied to Ethereum’s proof-of-stake mechanism.

Grayscale first activated staking for its Ethereum products in October last year. ETHE and the Grayscale Ethereum Staking Mini ETF were subsequently renamed in January 2026 to reflect their staking-enabled structure.

Read also: Solana Outperforms Bitcoin As ETF Inflows Gain Momentum After Crossing $1 Billion Mark

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