Grayscale stakes 32,000 ETH worth $150M on debut day across ETHE and ETH ETFs.
ETH price climbs above $4,700 after Grayscale’s staking launch and strong ETF inflows.
BlackRock ETHA leads inflows with $92M, while Grayscale sees slower initial interest.
Grayscale launched staking for its two Ethereum ETFs—ETHE and ETH—on Monday, October 6, becoming the first U.S. asset manager to add such a feature to spot Ethereum ETFs. On the first day, both funds staked a combined 32,000 ETH, valued at approximately $150 million, according to Arkham Intelligence.
Staking is also expected to increase the fund performance since it will enable investors to gain more returns on the Ethereum proof-of-stake network. This action will also help bring institutional investors who want to have diversified exposure to ETH. With the news, ETH increased by 4% to surpass the price, which was above $4,707 indicating good reception.
Staking Rewards Strategy for ETHE and ETH
Grayscale outlined separate reward distribution strategies for its two funds. The Grayscale Ethereum Trust (ETHE) will be paying out staking rewards in the form of cash payouts to investors who favor a regular payout. In the meantime, the Grayscale Ethereum Mini Trust (ETH) will use staking rewards as net assets to grow over time.
https://twitter.com/lookonchain/status/1975382957604090352
This dual approach provides investors with flexible options under a single platform. The move follows increased competition in the staking ETF space after Rex-Osprey introduced its staked Ether ETFs last week.
BlackRock Leads Inflows as ETH Price Strengthens
Despite the new staking feature, Grayscale’s ETFs recorded lower inflows compared to competitors. ETHE attracted $14.8 million in inflows, while ETH added $18.7 million. In contrast, BlackRock’s iShares Ethereum Trust (ETHA) led the market with $92 million in net inflows on the same day. Bitwise ETHW followed with $27 million.
BlackRock’s ETHA fund also reported inflows of 18,959 ETH, bringing its total traded volume to $2 billion and pushing its share price up by 4.47% to $35.79. ETHA’s assets under management have now surpassed $18.5 billion, reflecting strong institutional demand.
The positive sentiment provided ETH with an additional boost of 4% and the share is trading at a price that exceeds $4,707. Analysts believe that these developments would be able to help Ethereum to maintain itself on new all-time highs in the nearest future.
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