Grayscale wants to turn staking rewards from its Ethereum and Solana funds into cash payments at least once a quarter, starting around August 7. This would give investors an easy way to compare what each fund actually offers.
In July 17 SEC filings for the Grayscale Ethereum Staking and Grayscale Solana Staking ETFs, the asset manager announced plans to amend both trust agreements. If executed, each trust would convert ETH or SOL received as cash staking rewards into cash at least once per quarter and promptly distribute the proceeds after expenses not covered by the sponsor.
This requirement sets a minimum, not a fixed payment or return date. Grayscale could be distributed more frequently, with each payout dependent on actual staking rewards received during the period. The documents indicate that these amounts cannot be predicted with certainty, so the regularity applies to the process rather than the outcome.
Payment at a comparable rate
The proposed structure would recur a cash distribution mechanism that ETHE used earlier this year. On January 6, the fund paid approximately $0.083 per share, or $9.39 million in total, from staking rewards earned between October 6 and December 31, 2025, and sold for cash, according to CryptoSlate’s January coverage.
This January distribution showed staking rewards converted into cash for shareholders. Adding GSOL and a minimum schedule would create a comparable basis for comparing actual net cash payouts, disclosed spends, and timing between Ethereum and Solana, rather than judging structure from a single ETHE event.
The design also reflects the IRS framework for staking within eligible grantor trusts. Revenue Procedure 2025-31 allows a compliant trust to distribute net stake rewards consistently, either in kind or after a cash sale, at least quarterly. Grayscale’s proposed deals specifically cherry-pick, requiring trusts to sell native asset rewards before passing the net proceeds to shareholders.
Cash distribution does not defer all tax consequences until paid. Assuming a grantor trust treatment, the ETHE and GSOL disclosures indicate that U.S. holders would recognize their pro rata share of staking rewards as taxable income when the trust receives them, regardless of when the money is subsequently distributed. Selling ETH or SOL to fund the payment may also produce a prorated capital gain or loss.
The gain for the investor lies in comparability: a recurring liquidity recording on two assets. The remaining tradeoffs are variable rewards, expenses, conversion, and holder-specific tax consequences behind each payment.
