When Ethereum pays interest to TradFi: staking hits new highs, withdrawals clear out, is ETH approaching a structural turning point?

Article: imToken

Holding Ethereum ETFs can now earn periodic interest just like holding bonds?

Earlier this month, Grayscale announced that its Grayscale Ethereum Staking ETF (ETHE) has distributed the yields earned through staking from October 6, 2025, to December 31, 2025, to existing shareholders. This marks the first time a spot crypto asset trading product in the U.S. has distributed staking rewards to holders.

While this move may seem routine to Web3 native players engaged in on-chain operations, in the broader history of crypto finance, it signifies that Ethereum’s native staking yields are being packaged into traditional financial wrappers for the first time, a milestone of great significance.

More notably, this is not an isolated event. On-chain data shows that the Ethereum staking rate continues to rise, validator exit queues are gradually being absorbed, and new queues are forming—these changes are happening simultaneously.

These seemingly scattered signals are collectively pointing to a deeper question: Is Ethereum gradually evolving from an asset primarily driven by price volatility into a long-term accepted “interest-bearing asset” with stable income properties?

1. ETF Yield Distribution: The “First Experience” of Traditional Investors in Staking

Objectively, for a long time, Ethereum staking was more like a tech experiment with a bit of a “geeky” vibe, limited to the “on-chain world.”

Because it not only requires users to have basic crypto knowledge such as wallets and private keys but also understanding validator mechanisms, consensus rules, lock-up periods, and penalties. Although liquid staking (LSD) protocols like Lido Finance have lowered the participation barrier to some extent, staking yields themselves mainly remain within the native crypto context (e.g., wrapped tokens like stETH).

Ultimately, for most Web2 investors, this system is neither intuitive nor directly accessible—a significant barrier.

Now, this barrier is being bridged by ETFs. According to Grayscale’s distribution plan, each share of ETHE will receive $0.083178, reflecting the yield earned through staking during the relevant period and sold. The distribution will occur on January 6, 2026 (the dividend date), to investors holding ETHE shares as of January 5, 2026 (the record date).

In short, this yield is not derived from corporate operations but from network security and consensus participation itself. Previously, such yields were almost exclusive to the crypto industry; now, they are being packaged into familiar financial products like ETFs. Through U.S. stock accounts, traditional 401(k)s or mutual fund investors can access native Ethereum network yields (in USD) without touching private keys.

It’s important to emphasize that this does not mean Ethereum staking has become fully compliant or that regulators have issued a unified stance on ETF staking services. However, a key economic change has already occurred: Non-crypto-native users are now, for the first time, indirectly earning native Ethereum network consensus yields without needing to understand nodes, private keys, or on-chain operations.

From this perspective, ETF yield distribution is not an isolated event but the first step for Ethereum staking to enter a broader capital market horizon.

Grayscale is not an isolated case. The Ethereum ETF under 21Shares has also announced that it will distribute the staking rewards earned from ETH to existing shareholders. The distribution amount is $0.010378 per share, with the related dividend and payout processes already disclosed.

This undoubtedly sets a positive precedent. For institutions like Grayscale and 21Shares, which have influence in both traditional finance and Web3, the demonstration effect goes far beyond just dividend payments. It will likely promote the practical adoption and popularization of Ethereum staking and yield distribution in the institutional sphere. It also signifies that Ethereum ETFs are no longer just a price-tracking shadow asset but a genuine financial product capable of generating cash flow.

Looking at the longer term, as this model is validated, giants like BlackRock and Fidelity may follow suit, injecting hundreds of billions of dollars of long-term capital into Ethereum.

( 2. Record-high Staking Rates and the Disappearance of “Exit Queues”

If ETF yield distribution is more of a narrative breakthrough, then the changes in total staking rate and validator queues more directly reflect capital behavior.

First, Ethereum’s staking rate has hit a record high. According to The Block, over 36 million ETH are staked on the Ethereum Beacon Chain, accounting for nearly 30% of the circulating supply, with a staking market value exceeding $118 billion—setting a new all-time high. The previous peak was 29.54%, recorded in July 2025.

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Source: The Block

From a supply-demand perspective, a large amount of ETH being staked means it has temporarily exited the free float market. It also indicates that a significant portion of circulating ETH is shifting from high-frequency trading assets to long-term holdings that serve functional roles.

In other words, ETH is no longer just Gas, a transaction medium, or a speculative tool; it is increasingly acting as “means of production”—participating in network operation through staking and continuously generating yields.

Meanwhile, validator exit queues have also shown intriguing changes. As of this writing, the Ethereum PoS exit queue is nearly cleared, while the queue for new staking entries continues to grow (over 2.73 million ETH). In short, many ETH are choosing to be locked into the system long-term (see also “Piercing Ethereum’s ‘Degeneration’ Noise: Why ‘Ethereum Values’ Are the Widest Moat?”).

Unlike trading, staking is a low-liquidity, long-cycle, stable-return-oriented allocation. The willingness of funds to re-enter the staking queue at this stage at least signifies that more participants are willing to accept the opportunity cost of long-term locking.

If we combine the institutional ETF yield distribution, record-high staking rates, and queue structure changes, a clear trend emerges: Ethereum staking is evolving from early on-chain participant dividends into a structured yield layer gradually accepted by traditional finance and re-evaluated by long-term capital.

Any single indicator alone is insufficient for trend judgment, but together they sketch the outline of Ethereum staking economy’s gradual maturity.

( 3. The Future of Accelerating Maturity in the Staking Market

However, this does not mean that staking has made ETH a “risk-free asset.” On the contrary, as participant structures change, the types of risks faced by staking are shifting. Technical risks are gradually being mitigated, while structural risks, liquidity risks, and mechanism understanding costs are becoming more prominent.

As is well known, during the last regulatory cycle, the U.S. Securities and Exchange Commission (SEC) frequently wielded its authority, taking enforcement actions against several liquid staking-related projects, including allegations of unregistered securities against MetaMask/ConsenSys, Lido/stETH, Rocket Pool/rETH. This once created uncertainty for the long-term development of Ethereum ETFs.

In practical terms, whether and how ETFs participate in staking is more about product process and compliance structure design rather than a rejection of the Ethereum network itself. As more institutions explore boundaries in practice, the market is voting with real capital.

For example, BitMine has staked over 1 million ETH on Ethereum PoS, reaching 1.032 million ETH, worth approximately $3.215 billion, accounting for a quarter of its total ETH holdings (4.143 million).

In summary, Ethereum staking has evolved beyond a niche geek game.

As ETFs begin to steadily distribute yields, long-term capital is willing to queue for 45 days to participate in consensus, and 30% of ETH has transformed into a security barrier, we are witnessing Ethereum officially building a native yield system accepted by global capital markets.

Understanding this change itself, or participating in it, may be equally important.