What 21shares' First Staking Distribution Means for Ethereum ETF Competition

Markets 2026-01-09 02:20

What 21shares' First Staking Distribution Means for Ethereum ETF Competition

21shares announced it will distribute $0.010378 per share in Ethereum (ETH) staking rewards to holders of its TETH ETF.

The distribution follows Grayscale's groundbreaking staking payout earlier this week.

Payment scheduled for January 9 to shareholders of record as of January 8.

What Happened

21shares will distribute staking rewards earned from the trust's Ethereum holdings to TETH shareholders.

The FalconX subsidiary operates $34 million in assets under management with $25 million in net inflows since launch.

Grayscale distributed $0.083178 per share to its Ethereum ETF holders on January 6, marking the first U.S. spot crypto ETP to pass staking profits to investors.

21shares stakes a portion of its Ethereum holdings to generate rewards but faces operational and slashing risks.

The fund launched its first physically backed crypto ETP in 2018.

Read also: How Apex Group Will Verify ONyc's $250M Reinsurance Token Holdings

Why It Matters

Ethereum staking distributions are becoming competitive differentiators among ETF providers.

REX-Osprey launched the first 1940 Act registered ETF with staking in September 2025.

BlackRock filed for a staked Ethereum ETF in December 2025 planning to stake 70-90% of holdings, pending regulatory approval.

The trend allows traditional investors to earn staking yields without directly managing cryptocurrency wallets or validator infrastructure.

Staking introduces additional risks including lock-up periods, network disruptions, and validator penalties that could reduce returns.

Read next: Coincheck Acquires 3iQ For $112M - What This Means For Crypto ETF Market

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This content is for informational purposes only and does not constitute investment advice.

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