Grayscale Makes a Major Move: 161,000 Idle ETH Could Soon Be Put to Work

TL;DR

• Grayscale amended the agreement of its Ethereum ETF to make staking the default option for nearly all of its funds.
• The new contract requires that rewards be converted to cash and distributed to shareholders at least quarterly, though monthly payments are in the plans.
• Some 161,000 ETH remain idle as an operational reserve, while the fund has already accumulated $27.3 million in net rewards since October 2025.

Grayscale reformulated the trust agreement of its Ethereum Staking Mini ETF (ticker: ETH), according to a filing with the U.S. Securities and Exchange Commission (SEC). The change makes staking the default option for virtually all assets managed by the fund, and was announced four days before the expiration of a key deadline set by the Internal Revenue Service (IRS).

The IRS published rules in November 2025 allowing crypto funds to conduct staking without generating tax obligations at the fund level. The central condition is that rewards must be passed on to shareholders at least quarterly. Grayscale’s new agreement goes further: rewards will be converted to cash and payments are planned on a monthly basis.

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