Grayscale intends to amend its Ethereum and Solana trust agreements to convert staking rewards into cash distributions at least quarterly. The changes would apply to the Grayscale Ethereum Staking ETF and Grayscale Solana Staking ETF.
The asset manager filed documents with the SEC on July 17 outlining plans to sell ETH or SOL received as rewards and distribute the net proceeds after expenses. Distributions would begin around Aug. 7 and occur at least once each quarter.
The filings set a minimum cadence for payouts but do not guarantee fixed amounts or dates. Actual distributions will depend on staking rewards earned, expenses, and tax effects.
This structure builds on an earlier ETHE distribution made on Jan. 6 from rewards earned in late 2025. It aligns with IRS Revenue Procedure 2025-31, which permits quarterly cash or in-kind distributions from staking in grantor trusts.
U.S. holders must recognize their share of rewards as taxable income when received by the trust, regardless of when cash reaches investors.
