Grayscale updates ETH and SOL funds with planned staking payouts

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Grayscale expands staking strategy

Highlights

Grayscale plans cash payouts at least quarterly.
The proposal covers ETHE and GSOL.
Distribution amounts will vary.
Trust expenses will be deducted first.

The asset manager expects to amend the trust agreements for the Grayscale Ethereum Staking ETF, known as ETHE, and the Grayscale Solana Staking ETF, or GSOL, on or around Aug. 7, according to regulatory filings. Under the proposal, each trust would convert staking rewards into cash at least quarterly and distribute the net proceeds to shareholders, Cointelegraph reports.

Staking income moves into brokerage accounts

Staking allows token holders to support proof-of-stake blockchain networks in exchange for rewards. Grayscale’s structure would package that income inside products held through conventional brokerage accounts.

The trusts may deduct expenses before making distributions. Those costs could include compensation paid to Grayscale for arranging and facilitating staking activity. The payout amounts will not be fixed because rewards depend on the volume of assets staked, network conditions, and expenses during each period.

Grayscale made its first ETHE staking distribution on Jan. 5, paying about $0.08 per share. The company enabled staking for its Ethereum and Solana products in October 2025.

As of July 17, ETHE reported gross staking rewards of 2.67%, while GSOL reported 6.10%. ETHE had about $1.22 billion in net assets, compared with roughly $101.13 million for GSOL.

Tax rules shape the proposal

Grayscale said the amendments are intended to comply with Internal Revenue Service guidance governing how grantor trusts may participate in staking without losing their existing U.S. federal tax classification.

The company said the changes should not be materially adverse to shareholders but provided 20 days’ notice. Investors were also advised to consult tax professionals about the potential consequences of the new distribution framework.

Staking becomes more accessible

The proposal could make blockchain rewards easier to access through regulated investment products. Investors would receive cash without managing wallets, selecting validators, or handling digital assets directly.

The structure also brings staking funds closer to income-oriented products familiar to traditional investors. However, the payments are not guaranteed. Returns will fluctuate with network economics, operating costs, and the amount of crypto committed to staking.

Earlier, we reported that Grayscale delays IPO preparations due to market conditions.

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