Grayscale intends to start making regular cash payments to investors in its Ethereum and Solana ETFs, using the rewards earned from staking those cryptocurrencies.
Summary
- Grayscale plans quarterly cash distributions from staking rewards earned through its Ethereum and Solana exchange-traded funds.
- ETHE and GSOL payouts will vary based on rewards, operating expenses, fees and tax treatment.
- ETHE previously distributed $9.39 million after converting accumulated Ethereum staking rewards into shareholder cash payments.
On July 17th, the asset manager filed documents detailing planned updates for two ETFs: the Grayscale Ethereum Staking ETF (ETHE) and the Grayscale Solana Staking ETF (GSOL).
The proposed changes to the trusts would have each fund sell any Ethereum (ETH) or Solana (SOL) earned through staking, then give the resulting cash to its investors. Grayscale intends to do this at least every three months.
According to official documents, the company plans to finalize the changes around August 7, 2026. But these notices don’t specify exactly when payments will be made, or how much money people will receive.
Grayscale Investments intends to start distributing cash payouts to investors in its Ethereum (ETHE) and Solana (GSOL) staking ETFs on a quarterly basis. CryptoSlate reports that Grayscale will modify the agreements governing these ETFs to convert the staking rewards earned from Ethereum and Solana into cash, which will then be distributed to shareholders.
— Wu Blockchain (@WuBlockchain) July 20, 2026
ETHE and GSOL would convert staking rewards into cash
The new system would need both trusts to turn their staking rewards into cash at least every three months. They would then distribute funds to shareholders, subtracting any costs not already paid by Grayscale.
These reductions might cover a portion of the staking rewards that Grayscale earns for setting up and handling the staking. The exact amount will vary based on how much each trust earns in rewards over a specific time.
Grayscale explained that it’s impossible to know exactly how much will be distributed to investors. Rewards from staking Ethereum and Solana can vary because of factors like network activity, how well validators perform, and the total amount of assets being staked.
Trusts can distribute payments more frequently than every three months. The new agreements establish a lowest acceptable payment schedule, but don’t specify exact dates or a guaranteed yearly amount.
This allowed investors to see how much cash ETHE and GSOL actually paid out during the same time. However, the funds didn’t guarantee they would have the same returns or pay out the same amount to investors.
ETHE previously paid $9.39 million to shareholders
This new plan builds on a previous cash payout from ETHE. In January 2026, the fund turned the Ethereum rewards it earned from staking between October 6th and December 31st, 2025, into cash.
ETHE distributed approximately $0.08 per share to its shareholders, totaling around $9.39 million. This payout demonstrated a way to share staking rewards through a publicly traded Ethereum product without actually giving shareholders ETH.
ETHE was the first crypto ETF listed in the US to give investors direct payouts from Ethereum staking, delivering those earnings as actual cash.
In October 2025, Grayscale began offering staking for its Ethereum and Solana investment products. This new feature lets investors earn rewards from the Ethereum and Solana networks, on top of owning the digital assets themselves.
Crypto.news previously reported that ETHE, the Ethereum Mini Trust ETF, and GSOL were planning to offer staking options.
In October 2025, GSOL started trading on the NYSE Arca exchange after previously being a closed-end trust. Grayscale originally intended to distribute 77% of the Solana staking rewards earned to shareholders as part of the fund’s value.
When this new crypto product first came out, it was already doing really well – over $102 million was locked into it right away! Plus, almost three-quarters of the SOL tokens connected to it were being staked, which is great for earning rewards and securing the network. I was pretty impressed with that initial traction.
IRS rules shape the proposed distribution schedule
Grayscale explained that the suggested changes would allow their ETHE and GSOL products to follow IRS guidelines outlined in Revenue Procedure 2025-31. These guidelines clarify how certain trusts can participate in staking digital assets without losing their tax benefits at the federal level.
This process lets eligible trusts share profits from staking – either as cryptocurrency directly, or as cash received from selling it. These payouts must happen regularly, at least every three months.
Grayscale has chosen to receive payouts in cash for its two funds. This means that ETHE will sell any Ethereum rewards it receives, and GSOL will sell Solana rewards, before sharing what’s left with investors.
SEC filings point out that simply receiving cash isn’t always when taxes are due on investments. With the proposed changes for grantor trusts, U.S. investors could be taxed on staking rewards as soon as the trust receives them.
The tax event might happen before investors actually receive their payout. Plus, if the company sells Ethereum or Solana to make those payouts, it could result in shareholders having to report capital gains or losses.
Grayscale recommends investors speak with a tax professional regarding their specific financial situation. They haven’t announced expected returns for these products.
Quarterly payments could make fund returns easier to compare
As a researcher, I believe a standardized payment schedule would really benefit ETHE and GSOL investors. It would provide a much clearer picture of how much cash each fund actually earns from staking, after all fees and expenses are taken into account.
Investors can evaluate how different Ethereum and Solana products distribute rewards, when those rewards are paid out, and what fees are taken out. However, the actual returns will vary based on each network’s staking rules and how much money the trusts commit to validators.
Other investment firms are also offering crypto products that involve staking. BlackRock’s Ethereum staking offering is planned to pay out rewards either every month or at least every three months.
More institutions are now showing interest in staking cryptocurrencies through regulated products. For example, Dartmouth College revealed in May that it invests in both a Solana staking ETF and a staking product offered by Grayscale for Ethereum, as crypto.news previously reported.
Grayscale needs to finalize some trust updates before the new system can start working. If these updates are completed around August 7th, it will set up regular, quarterly payment schedules for both ETHE and GSOL.
We don’t yet know when the first payments will be made or how much they will be. The amount will be based on how well staked assets perform, the costs of running the fund, any sales of Ethereum or Solana, and the tax laws in effect at the time of each payment.
2026-07-20 13:44