It cannot exactly be called a dividend because Ethereum (ETH) staking income will be distributed, but this will increase the attractiveness of ETH ETFs. Grayscale gave the big good news today. Although previous SEC Chairman Gensler opposed the staking feature for ETH ETFs, the new SEC administration paved the way for this after Trump took office.
ETH ETF Dividend
For stock investors, staking income is not a familiar expression, but rather the way they are accustomed to being paid. dividend we can say. Grayscale, the largest institutional cryptocurrency fund manager before ETF approvals, announced this landmark step today. Investors who hold ETH ETF shares will receive payments in dollars for each share.
Grayscale’s The abbreviation of the ETH ETF is ETHE, and we will be monitoring today’s inflows closely. If investors like the idea of distributing staking income, inflows should increase exponentially throughout the week. Grayscale CEO Peter Mintzberg said;
“ETHE Distributing staking rewards to its shareholders is a landmark moment not only for Grayscale, but also for the entire Ethereum community and ETPs in general. “As the first Ethereum ETP in the US to transfer staking rewards to investors, we are strengthening Grayscale’s role as an early leader in bringing new digital asset capabilities to the ETP suite.”
ETH ETF Attraction Will Increase
For each share, 0.083178 dollars, i.e. 3.58 TL, will be paid. Although this is a very low figure compared to the share price of $ 25.95, investors were not able to get this either until yesterday. The value of this figure, which will be more meaningful for large investors, corresponds to 0.32% of the share.
in October Grayscale Ethereum Trust ETF After Grayscale became the first company to receive staking permission for the Grayscale Ethereum Mini Trust ETF, other asset managers also took action. The annual APY for ETH staking is around 5%, and as competition increases, the proportion of payout distributed will also increase. Moreover, this figure stems from staking rewards earned between October 6 and December 31. When annualized, the figure would roughly equate to 1.3%. For investors who buy with the motivation to profit from the ETH price increase, this will mean passive income while waiting for the rise.
Other altcoins Since the APY for is much higher, it is possible for altcoin ETFs to fuel hype with large dividend payouts. Even if staking permission is granted, it will not be possible to approach the maximum APY as not all assets are locked for staking.
