Grayscale will amend the trust agreements for its Ethereum Staking ETF (ETHE) and Solana Staking ETF (GSOL) to convert staking rewards into cash and distribute them to shareholders at least quarterly, effective August 7, according to SEC filings dated July 17.
Payment dates and amounts will depend on staking rewards earned, fund expenses and tax considerations. Grayscale previously distributed $9.39 million, or $0.083178 per share, from ETHE's staking rewards accrued between October 6 and December 31, 2025, converting that income to cash rather than reinvesting it.
Grayscale's Ethereum Staking ETF launched in June 2023 and tracks the performance of Ethereum staked with Coinbase while receiving staking rewards. The fund holds over $10 billion in assets. The Solana Staking ETF, which launched in September 2024, operates similarly for SOL validators.
The shift to quarterly cash distributions marks a departure from the typical structure of staking funds, which generally reinvest staking income to compound returns. The change also aligns with how some traditional dividend-paying ETFs operate, potentially appealing to investors seeking regular cash income rather than compounding exposure.
The effective date of August 7 requires shareholder approval under the amended trust agreements. Grayscale said payment frequency could shift based on operational and market conditions.
