The staking program announcement follows a broader industry shift. Grayscale's Ethereum Staking ETF (ETHE) began staking in October 2025 and executed the first U.S. spot ether fund staking payout in January 2026, distributing approximately $9.4 million. A July 2026 amendment requires ETHE to convert staking rewards to cash no less than quarterly and distribute net proceeds. Grayscale's Ethereum Staking Mini ETF (ETH) staked 80.8% of its roughly 839,556 ether as of early August 2026, with gross staking rewards around 2.78% netting to 2.61% after fees. An August 6 amendment makes staking the default for nearly all holdings.
By contrast, BlackRock's iShares Ethereum Trust (ETHA) explicitly will not stake ether or pursue staking rewards, holding assets primarily in segregated cold storage at Coinbase Custody with Anchorage as an additional custodian. As of July 22, 2026, ETHA reported net assets of $5.55 billion and NAV per share of $14.53.
Regulatory developments have enabled this expansion. IRS guidance published in November 2025 permits crypto funds to conduct staking without generating tax obligations at the fund level. The CLARITY Act's Title III custody framework, combined with SAB 122's reversal of SAB 121 and OCC interpretive letters, has opened a path for bank-based digital asset custody. Fidelity Digital Assets operates as both a custodian and broker-dealer, a dual role reinforced by the evolving regulatory landscape.