Grayscale to Pay ETH and SOL Staking Rewards in Cold Hard Cash, Quarterly 🪙

Grayscale plans to convert staking rewards from its spot Ether and Solana exchange-traded products into regular cash distributions, according to Form 8-K filings submitted to the US Securities and Exchange Commission. The asset manager said it intends to amend the trust agreements governing the Grayscale Ethereum Staking ETF (ETHE) and the Grayscale Solana Staking ETF (GSOL) around Aug. 7, requiring each trust to convert staking rewards into cash no less often than quarterly and disburse the net proceeds to shareholders.

Under the framework, staking returns generated by the underlying $ETH and $SOL holdings would be delivered through broker-held products, removing the need for shareholders to custody crypto, select validators or oversee staking operations. Grayscale said the changes are intended to keep the funds compliant with Internal Revenue Service guidance, allowing the trusts to earn staking rewards without losing their current tax treatment. Each trust could deduct expenses not assumed by Grayscale before making a distribution, including a portion of staking rewards paid to the sponsor for arranging and facilitating staking activities.

Grayscale issued its first ETHE staking distribution on Jan. 5, paying shareholders approximately $0.08 per share from the sale of rewards. The asset manager enabled staking for its ETH and SOL products on Oct. 6, 2025, becoming the first US crypto fund issuer to add staking to spot crypto ETPs. ETHE ended the week with $1.22 billion in net assets, while GSOL had $101.13 million, based on Yahoo Finance data. As of July 17, the Ethereum fund's gross staking rewards stood at 2.67%, while the Solana fund's gross staking rewards were 6.10%, according to each fund's home page.

The filings do not establish a fixed distribution amount or guarantee that quarterly payouts will be identical, stating that rewards may vary depending on assets staked and prevailing network conditions. Grayscale has notified shareholders with a 20-day notice period and said it does not expect the amendments to significantly harm shareholders. Once the changes take effect, the asset manager plans to update the funds to explain the mechanics of the regular cash payouts.