Crypto fund providers are adding staking to ETFs and ETPs, giving mainstream investors access to passive crypto income.
Recent SEC guidance and advances in staking technology are fueling an industry-wide race to launch staking-enabled products.
SponsoredTop Crypto Fund Providers Adopt Staking
Major names such as Grayscale, 21Shares, and REX-Osprey are launching products that offer both digital asset exposure and staking rewards.
Grayscale, which manages $35 billion in assets, now offers staking in its US-listed Ethereum and Solana ETPs. Grayscale’s Ethereum Mini Trust ETF and Solana Trust allow investors to earn staking rewards in addition to holding the assets.
According to the company, investors can earn staking rewards, gain passive income, and gain exposure to the networks’ long-term value. These products partner with institutional custodians and multiple validators, making passive rewards accessible through standard brokerage accounts.
“Grayscale (ETHE and ETH ETF) has staked 857,600 $ETH ($3.83 billion) once more today,” one user shared in a post.
21Shares has also moved into staking, adding this feature to its Ethereum ETF (TETH), which participates in Ethereum’s validation process. A 12-month sponsor fee waiver was introduced to attract new investors.
With $12 billion under management, 21Shares underlines growing confidence in protocol staking rewards as essential for crypto investing. Meanwhile, REX-Osprey’s Solana Staking ETF (SSK) became the first US fund to use JitoSOL, a liquid staking derivative.
This product keeps staked SOL liquid and distributes all rewards to holders. By July, SSK had surpassed $100 million in assets, highlighting strong investor interest.
Sponsored SponsoredWhy Are Fund Managers Embracing Staking?
There is real momentum behind staking because of recent US Securities and Exchange Commission (SEC) clarity. In late May, the SEC stated that protocol staking on proof-of-stake blockchains, under certain conditions, is typically not considered a securities offering.
“It is the Division’s view that “Protocol Staking Activities” in connection with Protocol Staking do not involve the offer and sale of securities within the meaning of Section 2(a)(1) of the Securities Act of 1933 (the “Securities Act”) or Section 3(a)(10) of the Securities Exchange Act of 1934 (the “Exchange Act”),” the statement read.
This guidance eases legal concerns and encourages traditional funds to offer staking.
Staking provides a protocol-driven yield. It can turn volatile cryptocurrencies into a source of steady rewards, which appeals to retail and institutional investors seeking passive income.
SponsoredThe SEC’s statement described staking rewards as payments for supporting decentralized networks, not returns from someone else’s management. This distinction supports staking as a mainstream investment feature.
Technology is helping too. Liquid staking solutions and experienced validator partners lower technical hurdles. These advances make it easier for funds to offer staking and maintain liquidity, which remains a priority for ETFs and ETPs.
Risks Persist, but Market Demand Accelerates
Despite rapid growth, industry leaders acknowledge that staking introduces risks. These include slashing (penalties for validator errors), market volatility, technical issues, and limited liquidity.
Products like 21Shares’ TETH ETF and the REX-Osprey Solana Staking ETF address these concerns in disclosures, emphasizing transparency.
Sponsored SponsoredMeanwhile, SEC guidance does not cover all staking strategies. The policy applies to protocol staking but not all DeFi or third-party models.
Nonetheless, investor interest is rising. REX-Osprey’s Solana Staking ETF has surpassed $100 million in assets since July, and 21Shares and Grayscale have seen significant inflows.
Even BlackRock’s planned ETH ETF is moving closer to staking approval, with speculation about an October launch based on posts on X (Twitter).
The next era of ETF innovation is underway as managers use smart contract rewards to attract yield-seeking investors.
For investors and asset managers, staking in ETFs and ETPs signals clear progress in accessing crypto exposure. Regulatory confidence, new technologies, and rising demand ensure that staking will remain a key innovation among crypto funds.
