Grayscale to Pay ETHE and GSOL Holders in Actual Dollars, Not Just Rising NAV 📈

Grayscale Investments will convert staking rewards from its Ethereum and Solana exchange-traded products into cash and distribute the proceeds to shareholders at least once every quarter, according to Form 8-K filings submitted to the US Securities and Exchange Commission (SEC). 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, shifting the funds from a model in which rewards only accrete into the net asset value (NAV) per share to one that delivers recurring payouts.

The framework is designed to make staking returns more accessible to traditional investors by delivering cash rewards through broker-held products, eliminating the need for shareholders to hold crypto, pick validators or manage staking operations on their own. Grayscale said distribution amounts cannot be predicted, as they will depend on the staking rewards generated during each period and the expenses deducted by the trusts. Under the proposal, each trust could deduct expenses not assumed by Grayscale before making a distribution, which may include a portion of staking rewards paid to the sponsor in exchange for arranging and facilitating the staking activities.

Grayscale said the amendments are intended to keep the funds compliant with Internal Revenue Service (IRS) rules that enable them to earn staking rewards without losing their current tax treatment. The company added the amendments should not significantly harm shareholders and is providing a 20-day notice before the changes take effect. Once in force, Grayscale plans to update fund documentation to explain how the regular cash payouts will work.

ETHE made its first cash staking distribution on Jan. 5, paying shareholders about $0.08 per share from the sale of rewards. Grayscale enabled staking for its ETH and SOL products on Oct. 6, 2025, making it the first US crypto fund issuer to add staking to spot crypto ETPs. The Ethereum fund's gross staking rewards stood at 2.67% as of July 17, while the Solana fund's gross staking rewards were 6.10%, according to the funds' home pages.

ETHE ended the week with $1.22 billion in net assets, while GSOL had $101.13 million in net assets, per Yahoo Finance data; a separate filing referenced GSOL holdings of about $97 million. Grayscale has cut fees on GSOL to a 0.19% sponsor fee and a 7% staking fee. The filings do not set a fixed distribution amount or guarantee identical quarterly payouts, noting that rewards may vary depending on the assets staked and prevailing network conditions.