Grayscale to issue quarterly cash payouts for ETH, SOL

Grayscale plans to amend the trust agreements for the Grayscale Ethereum Staking ETF (ETHE) and Grayscale Solana Staking ETF (GSOL) so that ETH and SOL received as staking rewards are converted into cash and the net proceeds are distributed to shareholders at least quarterly, according to filings dated July 17. The filings state each trust would sell the native-asset rewards, deduct any expenses the sponsor does not cover, and promptly pay the net amount to holders. The change would establish a minimum payout cadence rather than a fixed payment amount or guaranteed yield; distributions will depend on the staking rewards the trusts actually earn in each period. Grayscale indicated the quarterly schedule could begin around Aug. 7 and that it may distribute more frequently if rewards warrant it. The proposed structure would set a regular timetable for converting rewards and paying shareholders, creating a consistent basis to compare actual cash returned from Ethereum and Solana staking. The filings note payout amounts are uncertain and will vary with staking yields, trust expenses and tax effects, so the regularity applies to timing and process rather than the size of each payment. Grayscale previously sold staking rewards from ETHE and distributed cash to shareholders on Jan. 6, when the fund paid about $0.083 per share, totaling roughly $9.39 million for rewards earned between Oct. 6 and Dec. 31, 2025. The amendments reference Revenue Procedure 2025-31, which allows a qualifying grantor trust to distribute net staking rewards either in kind or after a cash sale no less frequently than quarterly; Grayscale’s filings specify cash distributions. Under the expected grantor-trust treatment, U.S. holders would recognize their pro rata share of staking rewards as taxable income when the trust receives them, regardless of the timing of cash payments. Selling ETH or SOL to fund distributions can also create a pro rata capital gain or loss for holders. The filings emphasize that timing and process would be regular, while the amount of each distribution will be driven by variable staking rewards, trust expenses and individual tax consequences.