Crypto-centric asset manager Grayscale has wagered $150 million worth of ether after introducing staking on exchange-traded products (ETPs) on Monday.
According to blockchain data platform LookonChain, the asset management company has wagered 32,000 Ether (ETH), worth $150 million.
The transfer comes one day after Grayscale introduced etheric ETP staking, making it the first US-based crypto fund issuer to provide staking-based passive income to funds.
The move will allow Grayscale’s ETP and its shareholders to earn passive income by maintaining a $150 million reward. According to Grayscale’s ETP staking policy, these staking compensation will be treated as “fund assets.”
To deduct sponsors and custodian expenses, Fund shareholders will earn up to 77% of staking rewards generated by Grayscale’s Ethereum Trust and approximately 94% on Ethereum Mini Trust, based on the fee structure disclosed in SEC filing.
Both the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF (ETH) are exchange trading products registered under the Securities Act of 1933, not the Investment Companies Act of 1940.
This makes the ETP structurally different from the ETFs controlled by the 1940 Act.
The Grayscale move marks the launch of its first staking ETP in the US. However, it is expected that at least two additional ether staking funds will receive responses from the U.S. Securities and Exchange Commission (SEC) in October.
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October will form as a promising month of crypto, with 16 Crypto ETP applications applied to the monthly SEC calendar.
Of the 16, at least two crypto staking funds are awaiting decision, including the 21-share Core Ethereum ETF (TETH) staking filing scheduled for October 23, and BlackRock’s iShares Ethereum Trust (ETHA) ETP amendment that is about to add the staking rewards scheduled for October 30.
The 21 share ether fund is registered under the Securities Act of 1933 and is an ETP similar to the Grayscale ETH and ETHE ETP released yesterday.
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Meanwhile, the Rex-Sosprey Solana Staking ETF was launched in July as the first Solana (Sol) Staking ETF under the Investment Companies Act of 1940.
Grayscale’s Solana Fund, The Grayscale Solana Trust (GSOL), is also awaiting regulatory approval to allow staking and rise to ETP.
However, the ongoing government closure could slow the response to regulations on Crypto ETP applications as the SEC said it would operate “under the conditions of modification” with a “very limited number of staff” until the funding bill is passed.
With no clear resolutions visible, the Senate is scheduled to reunite the fundraising bill later on Tuesday after Republicans and Democrats failed to agree on Monday’s fifth time.
Government shutdowns also increase investors’ desire for cryptocurrency funds and diversified assets due to increased uncertainty.
Crypto ETPS saw its highest ever influx after the government shut down last week, recording cumulative investment worth $5.95 billion, Cointelegraph reported Monday.
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