Grayscale ETHE Makes First U.S. Ethereum Staking Payout

• Grayscale’s ETHE became the first U.S. Ethereum product to distribute staking rewards to shareholders in cash form.

• Each eligible ETHE share received $0.083178, funded by selling staking income while keeping Ether holdings intact.

• The renamed Ethereum Staking ETFs lack 1940 Act protections, and future staking payouts remain uncertain.

A first-of-its-kind payout reached U.S. investors on Monday, January 6, 2026, after Grayscale issued staking rewards through its Ethereum product. Grayscale, the issuer, distributed proceeds to shareholders after selling staking income generated by the fund.

First U.S. Ethereum ETP to Distribute Staking Rewards

According to Grayscale, the Ethereum Staking ETF, trading as ETHE, completed a cash distribution to eligible shareholders. The payout covered staking rewards earned between October 6, 2025, and December 31, 2025. Shareholders of record as of January 5, 2026, qualified for the distribution.

Notably, each eligible share received $0.083178. Grayscale funded the payment through the sale of staking rewards, not through Ether holdings. As a result, the fund’s principal Ether balance remained unchanged. ETHE traded ex-dividend at the market open on Monday.

Structure, Risks, and Distribution Mechanics

ETHE and its related product, ETH, operate as exchange-traded products. However, they are not registered under the Investment Company Act of 1940. Therefore, they do not carry the same protections as registered ETFs or mutual funds.

Grayscale stated that staking payouts have no fixed schedule. Moreover, future distribution amounts remain uncertain. The firm confirmed that staking proceeds alone financed the payment. Ether holdings only changed to the extent required to execute the distribution.

Product Renaming and Broader Ethereum ETF Context

In January 2026, Grayscale renamed its Ethereum products to reflect staking functionality. Grayscale Ethereum Trust ETF became Grayscale Ethereum Staking ETF, retaining the ETHE ticker. Similarly, the Ethereum Mini Trust ETF now trades as Ethereum Staking Mini ETF under ticker ETH.

According to Bloomberg Intelligence analyst James Seyffart, U.S. Ethereum ETFs hold nearly $19 billion in assets. This figure follows earlier outflows after October 10. However, institutional accumulation has continued alongside the recovery.