ETHE offers regulated Ethereum exposure plus 2.07% net staking income, but its 2.50% fee and competitive outflows make it a specialized, high-risk yield tracker rather than a low-cost core holding.
Overview
Grayscale Ethereum Staking ETF (NYSE Arca: ETHE) is a regulated, single-asset ETP holding spot and staked Ether for institutional, advisory, and retail brokerage accounts. Originally formed on December 13, 2017, publicly quoted in June 2019, and converted to a NYSE Arca spot ETP on July 23, 2024, it added “Staking” to its legal name effective January 5, 2026. As of September 21, 2026, it held 724,943.0522 ETH, had $2,002,343,456 of GAAP AUM, and backed each share with 0.00803631 ETH. **The key product enhancement is 2.07% net staking yield**, generated from an 80.92% participation rate and distributed monthly, but the benefit is offset by a 2.50% annual management fee. Q2 2026 staking income was $8.286 million, yet expenses of $12.079 million produced a $(3.793) million net investment loss. ETHE traded at $22.22 versus $22.20 NAV, a +0.09% premium. **The investment case is asymmetric ETH exposure, not conventional corporate earnings**: the base case reaches $38.95 NAV in 2031 and $41.05 including cash distributions, while low-cost competitors remain the central catalyst and risk.