Staking ETFs Have Arrived

Play

In October, Grayscale became the first U.S. issuer to begin staking the ETH and SOL underlying its spot crypto ETFs. This effectively made Grayscale the first asset manager in the U.S. to provide staking ETFs. Since this rollout, other major issuers have filed for or launched staking ETF products, with more expected to follow suit.

For ETH and SOL holders, staking provides an additional source of return on capital, making it a key component of the investment opportunity. Previously, crypto ETF shareholders in the U.S. were only allowed exposure to half of the equation, as the underlying assets were not being staked. As an investment opportunity, this created an unfavorable gap between owning ETH or SOL via an ETF and buying the tokens directly. According to Grayscale’s March 2025 presentation to the SEC’s Crypto Task Force, in the period from their launch through February 2025 alone, spot ETH ETFs missed out on ~$61 million in staking benefits (and that doesn’t include daily rewards compounding). Adding staking closes this gap for investors and packages staking rewards into a familiar, tradeable financial instrument.

At a macro level, U.S. staking ETFs are expected to strengthen the economic security of proof of stake networks through activating large pools of institutional capital for consensus participation. Importantly for the industry, staking ETFs make crypto staking accessible through one of the most familiar and widely adopted investment structures in global markets. We believe this development will be a catalyst for institutions and regulators alike to begin thinking deeply about how crypto and traditional finance can intersect to upgrade the financial system.

A trusted partner Coinbase Institutional is the largest institutional ETH staking provider and the primary custodian for 8 of the 9 spot ETH ETFs that were approved last July. Coinbase is also the trusted staking operator for a number of ETPs in countries where staking ETPs had already been approved, including Virtune, WisdomTree, and 21Shares. As staking ETFs begin rolling out in the U.S., we are working closely with issuers to provide certifiably secure and robust institutional-grade staking services.

Our full-service prime brokerage platform, Coinbase Prime provides a one-stop shop for institutions with its integrated custody and staking services. Our deep expertise and track record in both of these areas gives us a unique understanding of the challenges of operating staking ETFs. This has enabled us to build integrated custody and staking offerings that abstract away the complexities of blockchain and staking. Key features include the ability to manage staking workflows within the Prime UI or via the Prime Public API and access to a range of liquidity solutions. Prime also provides detailed rewards reports, giving ETF issuers unparalleled insights so they can make informed investment decisions for their end users. Coinbase’s mission is to bring one billion people onchain, and we believe staking ETFs will play a key role in our progress toward that mission.