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Grayscale, 21Shares Push Ethereum and Altcoin Staking ETF Applications Forward

2026-05-20

Asset managers including Grayscale and 21Shares have advanced applications for Ethereum and altcoin ETFs that incorporate staking rewards, aiming to pass on validator income to fund shareholders, according to reporting compiled by Yahoo Finance.

The push follows an SEC signal earlier in 2026 indicating that certain liquid staking activities may fall outside the agency's direct regulatory jurisdiction, a development Yahoo Finance's coverage described as providing incremental clarity for staking-enabled fund structures.

Grayscale has also been converting several existing crypto trusts into ETF structures covering assets including Litecoin, Solana, Dogecoin, XRP, and Avalanche, while separately pursuing Ethereum staking ETF authorization, according to the same reporting citing Bloomberg Intelligence analyst James Seyffart.

Separate market analysis from AInvest noted that Ethereum-linked ETF products drew a single-day inflow of roughly $640 million from BlackRock in January 2026, underscoring institutional appetite for yield-generating, liquid exposure to proof-of-stake assets as the staking ETF landscape develops.

Related on this site: Read our full breakdown of Ethereum staking risks and rewards.

Sources

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