Grayscale Introduces Staking Features for Cryptocurrency ETFs
In a significant development for cryptocurrency investment in the U.S., Grayscale has introduced staking features for its Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH), making them the first spot cryptocurrency ETFs to do so. This move enhances the functionality of these products, allowing investors to earn rewards through staking.
Expansion to Solana Trust
Additionally, Grayscale has announced that its Grayscale Solana Trust (GSOL) will offer staking as well, aiming to provide a unique avenue for investors to engage in SOL staking via conventional brokerage accounts. Once GSOL receives regulatory approval to transition into an ETF, it is poised to emerge as one of the pioneering spot ETPs for Solana that includes staking capabilities.
Regulatory Considerations
It’s crucial to note that both ETHE and ETH are not registered under the Investment Company Act of 1940, resulting in less regulatory oversight compared to standard ETFs and mutual funds. This presents a higher risk associated with investments in these products, including potential principal loss.
Furthermore, while these ETFs invest in digital assets, owning shares does not grant direct ownership of those assets. Currently, GSOL is not classified as an ETP and is exclusively available on the OTC market.
