Grayscale filed proposed distribution changes for its Ethereum Staking ETF (ETHE) and Solana Staking ETF (GSOL) on July 17, 2026. The amendments could take effect on or around August 7, 2026.
The proposed changes would require staking rewards to be converted into cash at least quarterly, with net proceeds distributed to shareholders. ETHE currently distributes cash payouts, while GSOL is set to transition to a mandatory distribution framework.
Grayscale has not disclosed fixed distribution amounts, record dates, or payment dates. The specifics will depend on the staking rewards earned and the expenses related to managing the funds.
ETHE’s first distribution, covering rewards from October 6 to December 31, 2025, totaled $9,397,326, equating to $0.083178 per share, paid on January 6, 2026. Subsequent payments included $2,750,310 on February 4, $2,242,052 on March 4, $2,390,145 on April 8, and $2,470,197 on May 6, bringing the total to $19,250,030.
The amendments align with IRS Revenue Procedure 2025-31, which established a tax safe harbor for digital-asset investment trusts participating in staking. The procedure mandates that net staking rewards be either distributed in kind or converted into cash for shareholders at least quarterly.
Under the current GSOL framework, Grayscale has discretion to retain or distribute staking rewards as cash. The proposed changes will require regular sales of staking rewards to facilitate cash distributions after deducting operational expenses.
Grayscale’s sponsor fee for GSOL decreased from 0.35% to 0.19% on June 25, 2026, while the staking fee was reduced from 23% to 7%, which could enhance payout potential for investors.
Ethereum’s official staking annual percentage rate was reported at 2.65% as of July 20, while Solana did not provide a live network annual percentage yield.
Grayscale’s filing with the U.S. Securities and Exchange Commission stated that the amount to be distributed will rely on the actual staking rewards received, which cannot be predicted with certainty.
