Grayscale Staking ETFs to Deliver Quarterly Cash Payouts

Grayscale is making changes to its staking ETFs, including Grayscale Solana Staking ETF (GSOL) and Grayscale Ethereum Staking ETF (ETHE), to provide regular cash payouts to shareholders. The asset manager filed Form 8-K with the SEC on August 1st to amend the trust agreements for both funds.

The amendments will require each trust to convert staking rewards into cash at least quarterly, distributing net proceeds to investors. This move is aimed at making staking returns more accessible to traditional investors, who may not want to hold cryptocurrencies or manage staking operations themselves.

Grayscale has already made a single distribution from ETHE on January 5th, paying out $0.08 per share. The company expects the changes to take effect around August 7th and will provide updates to investors on how the regular cash payouts will work.

The Ethereum fund's gross staking rewards were 2.67% as of July 17th, while the Solana fund's gross staking rewards were 6.10%. Grayscale is aligning these changes with US tax guidance to maintain the funds' current tax treatment.