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Grayscale plans quarterly cash payouts for Ethereum and Solana staking

Grayscale says the change would start around Aug. 7 and require selling ETH or SOL staking rewards before distributing net cash to shareholders at least quarterly.

Reported · Written up by our desk · Market Structure

Grayscale is moving to reshape how staking rewards are paid out from its Ethereum and Solana investment vehicles, proposing trust changes that would convert staking rewards into cash at least once per quarter.

According to CryptoSlate, filings for the Grayscale Ethereum Staking ETF and Grayscale Solana Staking ETF, dated July 17, outline amendments to require each trust to sell the native staking rewards into cash and distribute the proceeds after expenses not covered by the sponsor. Grayscale said the first payouts would begin around Aug. 7, and that the schedule would set a minimum cadence without fixing the payment amount.

The asset manager also said payouts could occur more frequently, depending on the staking rewards earned during each period, and that those amounts cannot be predicted with certainty. CryptoSlate notes the design would create a more like-for-like way for investors to compare net cash payouts after expense drag and timing differences between the two funds.

CryptoSlate further reports that the proposed structure aligns with an IRS framework under Revenue Procedure 2025-31, which permits qualifying grantor trusts to distribute net staking rewards either in kind or after a cash sale no less frequently than quarterly. The filings also describe U.S. holders recognizing taxable income when the trust receives staking rewards, even if cash is distributed later, and the possibility of capital gains or losses tied to selling ETH or SOL for the payout.

Latest closeEthereum $1,873.59 ▲0.1%|Solana $76.45 ▲0.1%

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