Grayscale Overhauls Solana ETF Filing with Quarterly Rewards Distribution

Crypto asset manager Grayscale has amended its filing for the proposed Solana staking exchange-traded fund (ETF), GSOL, to address potential regulatory concerns and improve competitiveness in the market. The updated proposal outlines a plan to liquidate staking rewards into cash at least quarterly and distribute them directly to shareholders.

Under the revised structure, shareholders would receive staking rewards in U.S. dollars after deducting certain expenses. Grayscale plans to lower the management fee from 0.35% to 0.19% and cut the staking fee from 23% to 7%. The annual staking yield for GSOL is estimated at approximately 6.1%.

The SEC has historically been cautious about approving spot crypto ETFs, particularly those involving staking. Grayscale's amendment directly addresses potential regulatory concerns by offering a clear mechanism for reward distribution and reducing costs for end investors.