Grayscale filed SEC paperwork on July 17, 2026, adopting a Third Amended and Restated trust agreement for its Solana Staking ETF (GSOL). The change requires quarterly cash payouts of staking rewards to shareholders.
Key Takeaways
- Grayscale’s SEC-filed Third Amended and Restated trust agreement requires GSOL to convert staking rewards to cash quarterly and pay the proceeds to shareholders.
- The amendment is expected to take effect on or around August 7, 2026, after Grayscale gives shareholders 20 days’ prior notice of the change.
- Grayscale filed a parallel Fourth Amended and Restated trust agreement the same day for its Ethereum Staking ETF (ETHE), applying the identical cash-distribution mechanics.
- GSOL already stakes 100% of its SOL for roughly 6.1% in gross annual staking rewards, though payouts cannot be predicted with certainty.
- Grayscale recently cut GSOL’s staking fee from 23% to 7% and its sponsor fee from 0.35% to 0.19%, leaving more of the yield for shareholders.
What Happened?
Grayscale Investments Sponsors, the entity that sponsors Grayscale Solana Staking ETF, filed a Form 8-K with the SEC disclosing a Third Amended and Restated Declaration of Trust and Trust Agreement for GSOL. The sponsor also filed a matching Rule 424(b)(3) prospectus supplement confirming the same mechanics for GSOL shares, which trade on NYSE Arca under the ticker GSOL.
The amendment, according to Grayscale, requires the trust to reduce its staking rewards to cash no less often than quarterly and promptly distribute the net proceeds to shareholders. Grayscale says the redesign is necessary to conform to IRS Revenue Procedure 2025-31, the framework that lets a trust stake while keeping grantor-trust tax treatment. The sponsor judged the change not materially adverse to investors, so it is giving shareholders 20 days’ prior notice instead of calling a vote.
Grayscale Ethereum And Solana ETFs Plan Staking Cash Payouts
— BSCN (@BSCNews) July 20, 2026
Grayscale plans to distribute cash from Ethereum $ETH and Solana $SOL staking rewards at least once every quarter, beginning around Aug. 7.
The proposed changes would convert staking rewards into cash before paying… pic.twitter.com/WsAHVtFejd
The Fee Cut That Powers the Payout
GSOL already stakes 100% of its SOL holdings for roughly 6.1% in gross annual staking rewards, and the fee structure behind that yield is what makes the new payout meaningful. Effective June 25, 2026, Grayscale cut GSOL’s staking fee from 23% to 7% and its sponsor fee from 0.35% to 0.19%.
At the old rate, the sponsor kept nearly a quarter of every staking reward it generated. Trimming that take while locking in a mandatory schedule pushes GSOL toward an income-fund structure rather than a passive holding vehicle.
A Cross-Asset Template, Not a One-Off
Grayscale filed a Fourth Amended and Restated trust agreement for its Ethereum Staking ETF (ETHE) the same day it amended GSOL’s, using identical language requiring the trust to reduce staking rewards to cash no less often than quarterly and promptly distribute the proceeds. Both filings point to the same regulatory anchor: conforming to IRS Revenue Procedure 2025-31 so each trust keeps its grantor-trust tax status.
Running the same cash-conversion mechanic across both staking ETFs on one filing day signals a standardized payout architecture, not two isolated compliance edits.
Implications for Crypto Staking ETFs
The REX-Osprey SOL + Staking ETF, trading under the ticker SSK, already offers monthly distributions, a cadence advantage over GSOL’s quarterly minimum. The trust agreement sets a floor of no less often than quarterly for the cash conversion. That wording is a minimum, not a cap, leaving room to close the SSK cadence gap later.
There is also a tax wrinkle. Cash distributions from a staking ETF are likely treated as ordinary income in most jurisdictions, a different outcome than holding unstaked SOL. Grayscale encourages investors to consult tax advisors before acting on the change.
CoinLaw does not offer that advice here. Treat the distinction as informational, not as a recommendation to buy, sell, or hold GSOL shares.
GSOL’s October 2025 uplisting to NYSE Arca already opened the fund to the kind of retail investing data CoinLaw tracks across exchange traded crypto products, and the new payout policy extends that retail-facing shift into cash income.
CoinLaw’s Takeaway
Grayscale is running one IRS-anchored cash rule across both its Solana and Ethereum trusts, not testing a one-off tweak. The sponsor is importing dividend fund payout logic into a proof-of-stake product.
The open question is durability, not intent. Solana’s staking yield moves with network conditions, so a fixed cash schedule wrapped around a variable reward can look steadier than it is. The quarterly promise is a payment schedule, not a return guarantee, and the ordinary-income tax framing is a real constraint on GSOL’s appeal as a fixed-income substitute.
