Grayscale Locks In Quarterly Staking Payouts For Ethereum, Solana ETFs

• Grayscale plans to make staking-reward distributions a recurring quarterly feature for its Ethereum and Solana staking ETFs.
• Updated trust agreements would require staking rewards to be sold for cash and distributed to shareholders at least once every quarter.
• The amendments are designed to comply with IRS guidance governing the tax treatment of staking within grantor trusts.

Grayscale plans to make quarterly staking-reward payouts a standing requirement, not as a one-time event, for its Ethereum (ETH) and Solana (SOL) staking exchange-traded funds (ETFs).

The firm also intends to execute a Fourth Amended and Restated Declaration of Trust and Trust Agreement for the Ethereum Staking ETF and a Third Amended and Restated agreement for the Solana Staking ETF on or around August 7.

Under each amendment, each trust would have to sell its staking rewards for cash at least quarterly, and then pass through that cash to shareholders after paying any trust expenses.

IRS Compliance Drives Trust Amendments

The filings showed the amendments were made to bring each trust's staking activities into compliance with IRS Revenue Procedure 2025-31, which described the circumstances under which a trust could stake and still be treated as a grantor trust for US federal income tax purposes. 

Grayscale said it determined that the changes were “not materially adverse to Shareholders” but was providing 20 days’ notice prior to execution, as required by each trust’s existing agreement.

The filings also said both funds would file supplemental disclosures that would include updated tax consequences and risk factors related to the changes. Grayscale said it planned to file a prospectus supplement once the amendments were made.

One-Time Payout To Standing Policy

The latest filings formalize a distribution structure that Grayscale first tested on a one-off basis earlier this year.

In January, Grayscale Ethereum Trust (ETHE) became the first US spot crypto exchange-traded product (ETP) to give out staking rewards to shareholders, paying $0.083 per share, or $9 million total, for staking rewards earned from October 6 to December 31, last year. 

This January payout was "a landmark moment...not just for Grayscale, but for the entire Ethereum (ETH) community and ETPs at large," Grayscale CEO Peter Mintzberg had said at the time. He also noted that it further cemented Grayscale's position as “an early leader in bringing new digital-asset capabilities into the ETP wrapper.”

ETHE’s price was up by 0.61% during morning trade hours. On Stocktwits, the retail sentiment around ETHE shifted to ‘bullish’ from the ‘neutral’ zone, while chatter around it stayed in the ‘normal’ levels over the past day.

GSOL’s price was up over 1% during morning trade. On Stocktwits, retail sentiment around GSOL remained in the ‘Neutral’ zone while chatter stayed at ‘high’ levels over the past day. 

The Grayscale Solana Trust has drawn $108.80 million in cumulative net inflows since its late-October 2025 launch, with net assets of $98.64 million as of July 16, according to SoSoValue data. The Grayscale Ethereum Trust, by contrast, has recorded $5.34 billion in cumulative net outflows since July 2024, with net assets now at $1.42 billion.

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