Grayscale’s Ethereum Mini ETF will now stake nearly all idle ETH, aligning with IRS rules ahead of an August 10 deadline.
Grayscale revised its trust agreement for the $1.6 billion Ethereum Staking Mini ETF (ETH) to make staking the default for nearly all holdings. The change, filed with the SEC on August 6, ensures compliance with IRS rules requiring quarterly reward distributions to avoid fund-level taxation.
The fund has already staked most of its ETH since October 2025, earning $27.3 million in net rewards at an annualized 2.61% yield after fees. The new agreement mandates monthly cash payouts to shareholders and limits exceptions to operational needs like fees or redemptions.
The update precedes an August 10 IRS deadline for crypto funds to adopt staking without tax penalties. Grayscale’s move follows its October 2025 launch as the first U.S. issuer to enable staking in spot crypto ETFs.