TL;DR
- Grayscale filed two 8-K forms with the SEC to distribute staking rewards in cash to holders of its ETH and SOL ETPs.
- Amendments to the GSOL and ETHE trusts would take effect on August 7, offering cash payments at least once per quarter.
- ETHE closed the week with $1.220 billion in net assets, while GSOL recorded $101.13 million under management.
Grayscale plans to establish periodic cash distributions from the rewards generated by the staking of its exchange-traded products for Ethereum and Solana. The asset manager filed two 8-K forms with the U.S. Securities and Exchange Commission (SEC) detailing its intention to amend the trust agreements governing the Grayscale Solana Staking ETF (GSOL) and the Grayscale Ethereum Staking ETF (ETHE), with an effective date set for around August 7.
The amendments would require each trust to convert staking rewards into cash at least once per quarter and distribute the net proceeds to shareholders. The company clarified that amounts cannot be predicted in advance, as they will depend on the rewards accumulated during each period and the expenses deducted by the trusts.
Grayscale Offers Returns to Traditional Investors
The structure aims to offer staking returns to traditional investors who operate through broker-custodied products, eliminating the need to hold crypto assets directly, select validators, or manage staking operations.
ETHE’s first distribution took place on January 5, when shareholders received approximately $0.08 per share from the sale of rewards. The asset manager had launched staking for its ETH and SOL products on October 6, 2025, becoming the first U.S. crypto fund issuer to incorporate staking into spot ETPs.
According to Yahoo Finance data, ETHE closed the week with $1.220 billion in net assets, while GSOL recorded $101.13 million. Currently, the gross staking rewards for the Ethereum fund stand at 2.67%, while those for the Solana fund reach 6.10%.
Tax Compliance
The company noted that the amendments are designed to keep the funds in compliance with Internal Revenue Service (IRS) rules that allow them to generate staking rewards without losing their current tax treatment. Investors will receive a 20-day notice before the changes take effect.
Under the proposed structure, each trust may deduct expenses not covered by Grayscale before making a distribution, including a portion of the rewards paid to the sponsor for organizing and facilitating staking activities. The amounts are neither fixed nor guaranteed, and will vary depending on the assets being staked and the conditions of each network.
