Asset manager Grayscale is moving to formalise regular cash distributions from its Ether and Solana staking exchange-traded products, giving shareholders a recurring income stream tied directly to on-chain yields.
What the SEC Filings Say
In Form 8-K filings submitted to the US Securities and Exchange Commission, Grayscale announced plans to amend the trust agreements governing two products: the Grayscale Solana Staking ETF (GSOL) and the Grayscale Ethereum Staking ETF (ETHE). The amendments are targeted for around 7 August and would require each trust to convert staking rewards into cash no less than quarterly, then distribute net proceeds to shareholders.
Grayscale is providing a 20-day notice period, saying the amendments should not significantly harm shareholders. Once the changes take effect, the firm plans to update fund documentation to explain how the regular cash payouts will operate in practice.
Fund Size and Current Yields
As of the most recent data, ETHE held $1.22 billion in net assets while GSOL carried $101.13 million, according to Yahoo Finance figures. The Ethereum fund was generating gross staking rewards of 2.67% as of 17 July, while the Solana fund posted gross staking rewards of 6.10%, per the funds’ own pages.
Grayscale made its first ETHE staking distribution on 5 January, paying shareholders approximately $0.08 per share from the sale of accumulated rewards. The firm had originally enabled staking for both its ETH and SOL products on 6 October 2025, becoming the first US crypto fund issuer to add staking to spot crypto exchange-traded products.
Accessibility and IRS Compliance
The framework is designed to make staking returns accessible to traditional investors through broker-held products, removing the need for shareholders to hold crypto directly, select validators, or manage staking operations themselves. However, Grayscale cautioned that distribution amounts cannot be predicted in advance, as payouts will depend on rewards accrued during each period and expenses deducted by the trusts.
Grayscale stated the changes are also designed to maintain compliance with Internal Revenue Service rules that allow the funds to earn staking rewards without losing their current tax treatment.
Cost Deductions and Variable Payouts
Under the proposal, each trust may deduct certain expenses before making a distribution. These costs could include a portion of staking rewards paid to the sponsor in exchange for arranging and facilitating staking activity on behalf of the trusts.
The move positions Grayscale’s staking ETPs closer to traditional income-generating fund structures, giving shareholders a defined cash return mechanism without requiring direct crypto exposure.
