Ethereum and Solana ETFs: Grayscale to Pay Staking Rewards in Cash Quarterly

Staking goes cash. Grayscale is set to convert the staking rewards generated by its Ethereum (ETHE) and Solana (GSOL) ETFs into dollars and distribute them to shareholders at least once a quarter. The first payments are expected around August 7. The American asset manager filed amendments to the trust agreements for its two funds with the SEC, the U.S. stock market regulator, on July 17, according to documents spotted by the specialized press. The on-chain yield thus takes the most familiar form for a traditional investor: a dollar payment, on a roughly fixed date.

Key Points

• Grayscale has filed amendments with the SEC requiring at least quarterly cash distributions for its ETHE and GSOL ETFs, starting August 7.
• Staking rewards in ETH and SOL will be sold and then distributed to shareholders after deducting fees.
• ETHE has already distributed about $9.39 million in January, or $0.083 per share, a first for a U.S.-listed product backed by Ethereum.
• GSOL stakes 100% of its SOL for about 6.1% gross annual yield, compared to nearly 4.4% for Ethereum.

A useful reminder: staking involves locking up tokens to participate in securing a network, in exchange for rewards paid in the protocol's cryptocurrency. Until now, these earnings accumulated quietly within Grayscale's funds and contributed to their net asset value.

The new arrangement changes the mechanics: the ETH and SOL received as rewards will be sold, and the net proceeds, after deducting fees not covered by the sponsor, will be distributed to shareholders at least quarterly.

No amount is guaranteed, however. Payments will depend on the rewards actually received during the period, the fund's expenses, and tax considerations.

These cash distributions align with the American grantor trust regime, a tax structure where the fund's income is taxed directly in the hands of the shareholders. It makes sense to pay them the corresponding dollars rather than letting them pay tax on rewards they do not receive.

Grayscale is not starting from scratch. In early January, ETHE became the first U.S.-listed product backed by Ethereum to distribute staking rewards. The fund had then converted into cash the earnings accumulated between October 6 and December 31, 2025, amounting to about $9.39 million distributed to shareholders, at a rate of $0.083 per share.

Ethereum vs. Solana: The Yield Duel

The principle remains the same: only the rewards are sold, the underlying stock of ETH remains intact in the fund. The investor retains exposure to the price of ether while receiving periodic income, without managing a wallet, running a validator, or dealing with any command line. This blend of yield and price exposure is precisely what attracts a clientele accustomed to dividend-paying stocks.

By imposing the same payment cadence on both funds, Grayscale is organizing, whether intentionally or not, a real-world comparison. GSOL now stakes all of its SOL and generates a gross yield of about 6.1% per year, while Ethereum staking hovers around 4.4% gross, according to data published by the manager. Each quarter, the net amount per share, in dollars, will provide a numerical verdict that investors can compare line by line.

For GSOL, this step also marks the culmination of a long journey: launched in 2021 as a private placement, the fund languished for many years in the over-the-counter market before arriving on the NYSE Arca at the end of October 2025, with a management fee of 0.35%. Competition is not waiting: the REX-Osprey SOL + Staking ETF (SSK) already pays monthly distributions to its holders. On paper, Solana is favored in this first quarter with its 6.1% gross. The answer in dollars and cents will come around August 7, with the first dividend line. The yield battle is just beginning.

Disclaimer: This content is provided for general branding and informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online events, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets or to use any services. Crypto assets are highly volatile and may result in loss. WEEX services and online events may not be available in all regions and are subject to applicable laws, regulations, and eligibility requirements. You are responsible for ensuring that your use of WEEX services complies with local laws and for carefully assessing the risks before participating in any crypto-related activities.