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.
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.
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.