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Grayscale sets quarterly minimum cadence to cash out staking rewards

Grayscale amendments effective Aug. 6 require the ETHE, GSOL and GAVA trusts to convert staking consideration into cash at least quarterly and distribute net proceeds after fees and expenses.

Reported · Written up by our desk · Ethereum

Grayscale has amended three staking-focused crypto exchange-traded products to create a required schedule for converting staking rewards into cash for shareholders. According to CryptoSlate, trust amendments executed Aug. 6 for the Grayscale Ethereum Staking ETF (ETHE), Grayscale Solana Staking ETF (GSOL) and Grayscale Avalanche Staking ETF (GAVA) set a binding minimum cadence to reduce “Staking Consideration” to cash no less often than quarterly.

After the trusts convert the earned staking consideration, they must distribute the net proceeds promptly, after applicable fees and trust expenses. The three trusts currently intend to make distributions monthly, but the quarterly floor is the enforceable requirement.

CryptoSlate notes the changes are designed around recurring reward-token sales, not scheduled liquidation of principal ETH, SOL or AVAX holdings. Other disclosures still permit token sales for separate purposes such as redemptions, fees and expenses, and the amendments do not specify how much will be sold in any future period.

As of June 30, ETHE reported $1.22 billion in total assets and $999.96 million in staked ETH, about 81.7% of its assets. GSOL held $101.16 million in assets with $101.05 million staked SOL, roughly 99.9%, while GAVA reported $4.27 million in assets and $3.45 million staked AVAX, about 80.9%. CryptoSlate also reported ETHE charged a 2.5% annual Sponsor fee, with staking-related deductions that accounted for part of gross rewards, while GSOL and GAVA disclosed their own sponsor fees and deduction rates.

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