Key facts
- Grayscale plans to distribute cash from ETH and SOL staking rewards quarterly starting August 7.
- The Grayscale Ethereum Staking ETF (ETHE) and Grayscale Solana Staking ETF (GSOL) will convert rewards to USD and pay shareholders.
- This shift moves from rewards solely increasing net asset value (NAV) per share to direct income distribution.
- Grayscale previously made a cash distribution from ETHE staking rewards in late 2025.
- Fee reductions for GSOL effective June 25, 2026, improve shareholder economics.
Grayscale is set to begin distributing cash from the staking rewards generated by its Ethereum Staking ETF (ETHE) and Solana Staking ETF (GSOL) on a quarterly basis, starting around August 7. This strategic shift, detailed in recent SEC filings, moves away from the previous model where staking rewards only contributed to the funds' net asset value (NAV) per share. The amendments will enable these rewards to be liquidated into U.S. dollars and paid directly to shareholders, transforming the ETFs into yield-generating assets akin to traditional dividend-paying funds.
Grayscale has already piloted this cash distribution strategy with its ETHE product, having distributed $9.39 million ($0.08 per share) in late 2025. This move paves the way for the same framework to be applied to GSOL. The company has also recently implemented fee reductions for GSOL, effective June 25, 2026, lowering the sponsor fee to 0.19% from 0.35% and the staking fee to 7% from 23%. These changes are intended to enhance shareholder economics and make staking yields more accessible to traditional investors.
As of mid-July 2026, GSOL holds approximately $97 million in assets and generates a gross annualized staking reward of about 6.10%, with a net yield near 5.03% after fees. ETHE holds $1.22 billion in net assets and generates gross staking rewards of 2.67%. The distributions are expected to occur at least quarterly, with Grayscale retaining the option for more frequent payouts. Net proceeds will be calculated after deducting sponsor fees, expenses, and staking fees. Investors should be aware that staking yields are variable and distribution amounts will fluctuate based on network conditions, validator performance, and asset prices at the time of reward liquidation. The changes are expected to take effect around August 7, following a mandatory 20-day shareholder notice period triggered by the July 17 SEC filing.