Grayscale to pay ETH and SOL staking rewards quarterly

Grayscale will amend the trust agreements for its Grayscale Ethereum Staking ETF (ETHE) and Grayscale Solana Staking ETF (GSOL) to convert staking rewards into cash and distribute the proceeds to shareholders at least once every quarter, with the change expected to begin around Aug. 7.

The July 17 filings state each trust will sell ETH or SOL received as staking rewards, pay expenses not covered by the sponsor, and promptly pass remaining cash to holders on a quarterly basis or more frequently. The schedule sets a minimum cadence for payouts and does not fix payout dates or the amount investors will receive; actual distributions will depend on staking rewards, trust expenses and tax effects.

ETHE used a cash-distribution process earlier this year. On Jan. 6, ETHE paid about $0.083 per share, roughly $9.39 million in total, from staking rewards earned between Oct. 6 and Dec. 31, 2025, after selling rewarded ETH for cash. Extending a regular schedule to GSOL will let investors compare net cash returned, expense drag and timing across the two funds on a like-for-like basis.

The filings cite Internal Revenue Service Revenue Procedure 2025-31, which allows qualifying grantor trusts that stake tokens to distribute net staking rewards either in kind or after converting them to cash, provided distributions occur at least quarterly. Grayscale’s proposed agreements select cash distribution, meaning the trusts will routinely sell native-asset rewards before making payments to shareholders.

Tax treatment for U.S. holders will not change solely because the trust sells rewards to fund payments. Under grantor-trust treatment, holders are expected to recognize their pro rata share of staking rewards as taxable income when the trust receives the rewards, regardless of when cash is distributed. The sale of ETH or SOL to generate cash for payouts can also produce a pro rata capital gain or loss for the trust, which may affect shareholder tax outcomes.

The filings note the schedule fixes timing of conversion and distribution rather than guaranteeing returns. Each payout will depend on the quantity and market value of staking rewards the trust receives during the period, less fees and expenses. The sponsor may elect to distribute more frequently than quarterly if rewards and operational processes allow.

If approved and implemented, the amendments will standardize how staking rewards are handled across Grayscale’s Ethereum and Solana staking trusts and provide a consistent framework for reporting those cash flows to investors.