Some 161,000 ETH sit idle in Grayscale’s $1.6 billion Ethereum Staking Mini ETF (ticker ETH). A new trust agreement aims to shrink that pile toward zero.
The rewrite makes staking the default for nearly every coin the fund holds. It also guarantees shareholders regular cash payouts, and it landed just before a key tax deadline.
Staking Becomes the Default, Not the Target
Grayscale signed the new trust agreement on August 6, according to an SEC filing. It was cutting things close. An Internal Revenue Service (IRS) deadline to make such changes expired August 10, four days later.
The IRS rules, published last November, let crypto funds stake without triggering fund-level tax. There is one big string attached. Rewards must flow out to shareholders at least quarterly.
Grayscale’s rewrite delivers that and more. Rewards will convert to cash, with monthly payments planned. Moreover, where conditions hold, the agreement states the trust shall,
“engage in Staking with respect to all of the Trust’s Ether at all times, except for a short list of carve-outs.”
Those cover practical needs like fees, redemptions, and network emergencies.
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Grayscale Ethereum ETF Already Stakes Most of Its Ether
Grayscale has form here. It became the first US issuer to switch on staking in its spot crypto funds in October 2025.
The bet has paid. The Mini ETF has earned $27.3 million in net rewards since then, per Grayscale data. Net staking rewards currently run at 2.61% a year after fees.
As of August 6, the fund had staked 80.8% of its 839,556 ETH. Roughly 161,000 ETH sits idle as a buffer for redemptions, fees, and daily operations.
Meanwhile, rivals are competing on cost and yield. Morgan Stanley launched Ethereum and Solana funds charging just 0.14%, undercutting Grayscale’s 0.15%. Institutions such as Intesa Sanpaolo have rotated toward staked Ethereum products this year.
Ethereum trades near $1,915, up 0.4% over 24 hours. Therefore, staking yield remains a modest but steady sweetener on top of price exposure.
Whether payouts grow now hinges on that idle buffer. If the staked share climbs from 80.8% toward full deployment, distributable rewards should rise with it. Upcoming disclosures will show how fast that happens.