Grayscale will give investors cash access to staking income from ETH and SOL
Grayscale plans to implement regular cash distributions with the staking rewards generated by its Ether and Solana exchange-traded products (ETPs).
Asset manager Grayscale plans to establish regular cash distributions from rewards generated by its Ether (ETH) and Solana (SOL) staking exchange-traded products (ETPs), giving holders recurring access to income generated by the underlying assets.
In Form 8-K documents filed with the U.S. Securities and Exchange Commission (SEC), Grayscale stated that it intends to amend the trust agreements governing the Grayscale Solana Staking ETF (GSOL) and the Grayscale Ethereum Staking ETF (ETHE) around August 7. The amendments would require each fund to convert staking rewards into cash at least quarterly and distribute the net profits to shareholders.
The structure could make staking returns more accessible to traditional investors by distributing cash rewards through products offered by exchanges, eliminating the need for shareholders to hold cryptocurrencies, choose validators, and manage staking operations. However, Grayscale stated that distribution amounts cannot be predicted, as they will depend on staking rewards in each period and expenses deducted by the funds.
Grayscale conducted its first ETH staking distribution on January 5th, paying shareholders approximately $0.08 per share from the rewards sale. The asset manager enabled staking for its ETH and SOL products on October 6, 2025, becoming the first US cryptocurrency fund issuer to add staking to spot cryptocurrency ETPs.
The Ethereum fund ended the week with $1.22 billion in net assets, while GSOL had $101.13 million, according to Yahoo Finance data. The Ethereum fund's gross staking rewards were 2.67% on July 17th, while those of the Solana fund were 6.10%, according to the funds' homepages.
Alignment of staking funds with US tax guidelines.
Grayscale stated that the changes aim to keep the funds in compliance with Internal Revenue Service (IRS) rules, allowing them to earn staking rewards without losing their current tax treatment.
The company stated that the changes should not significantly harm shareholders, but is still giving them 20 days' notice. Once the changes take effect, the asset manager plans to update the funds to explain how regular cash payments will work.
According to the proposal, each trust fund could deduct expenses not incurred by Grayscale before making a distribution. These costs may include a portion of the staking rewards paid to the sponsor in exchange for organizing and facilitating staking activities.
The documents presented do not define a fixed distribution value nor guarantee that payments will be identical each quarter. Instead, they state that rewards may vary depending on staked assets and network conditions.
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