Grayscale to Pay ETH and SOL Staking Rewards in Cash Quarterly

Grayscale plans quarterly cash payouts from ETH and SOL staking ETFs, with ETHE and GSOL distributions expected from August.

Grayscale is preparing to introduce regular cash payouts for investors holding its Ethereum and Solana staking exchange-traded funds. 

The proposed changes would convert staking rewards into cash before distributing them to shareholders at least once every quarter. 

If approved, the new structure could begin as early as August. The move gives investors a clearer way to compare staking income generated by both crypto investment products.

Grayscale updates ETH and SOL Staking ETF Payout Structure

Grayscale filed amendments with the U.S. Securities and Exchange Commission on July 17 covering its Ethereum Staking ETF (ETHE) and Solana Staking ETF (GSOL). 

The filings outline a plan to distribute staking rewards as cash instead of keeping rewards in the native assets.

Under the proposal, the trusts would sell the ETH or SOL earned through staking before sending the remaining proceeds to shareholders. 

The distributions would occur no less than once every quarter after deducting expenses that the sponsor does not cover.

The proposal sets a minimum payment schedule instead of locking in fixed payout dates. Grayscale could issue distributions more frequently if conditions allow.

Payment amounts would still depend on staking rewards earned during each period. Expenses and tax treatment would also affect the final cash distributed to investors.

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Quarterly Payouts Create a Direct Comparison Between Ethereum and Solana

The proposed schedule expands on a process ETHE already used earlier this year. 

In January 2026, Grayscale converted Ethereum staking rewards earned between October and December 2025 into cash before distributing roughly $9.39 million to shareholders.

That earlier payment gave investors a real example of how staking rewards could flow through an ETF. Extending the same structure to GSOL creates a shared timetable for both products.

CryptoSlate reported that the approach allows investors to compare actual cash returns from Ethereum and Solana on a similar basis. 

Instead of reviewing different payout methods, investors would receive distributions through the same framework.

The development gained wider attention after Wu Blockchain shared CryptoSlate’s report on X. 

Grayscale Plans Quarterly Cash Payouts From ETH and SOL Staking Rewards

According to CryptoSlate, Grayscale plans to amend the trust agreements for its Ethereum Staking ETF (ETHE) and Solana Staking ETF (GSOL), allowing ETH and SOL staking rewards to be converted into cash and… pic.twitter.com/JstIqeNalq

— Wu Blockchain (@WuBlockchain) July 20, 2026

The post highlighted that payout timing and amounts would continue to depend on staking rewards, operating expenses, and tax considerations.

Tax Treatment and Payout Amounts Remain Variable

While the payment schedule would become more predictable, the cash amount would still vary each quarter. 

Staking rewards fluctuate over time, and expenses reduce the final amount distributed. The filings also explain that tax obligations do not wait until investors receive cash. 

Under the grantor trust framework, U.S. investors would generally recognize taxable staking income when the trust receives the rewards.

Selling ETH or SOL before distribution could also create capital gains or losses tied to each shareholder’s portion of the trust. 

Those tax outcomes depend on the value of the assets when they are sold.

If the amendments take effect around August 7, ETHE and GSOL investors could begin receiving recurring cash distributions under the updated structure. 

The proposal establishes a consistent payout process while leaving each quarter’s payment tied to staking performance and related costs.