Grayscale has filed an amended proposal for its Solana Staking ETF that would allow shareholders to receive cash from staking rewards every quarter. Under the proposal, staking income earned by the trust would no longer remain inside the fund. Instead, eligible proceeds would be converted into cash and paid to investors after required deductions.
The filing states that the trust will convert received staking rewards into cash at least once every quarter. The trust will deduct expenses and certain costs linked to staking arrangements before making payments to shareholders.
Grayscale said it cannot set payment amounts in advance because each distribution will depend on the staking rewards the trust receives during each period. Payment levels will also vary based on validator performance on the Solana network and the staking yield available during each quarter, which will affect the amount distributed to shareholders.
Grayscale Updates Solana Staking Distribution Process
Along with quarterly payments, the filing also includes changes supporting the trust’s staking structure and distribution process. The amendment outlines how staking rewards will flow from the trust to shareholders under a regular payment schedule instead of remaining within the fund.
Grayscale has already staked all SOL held by the trust. According to the filing, staking activity currently produces an annual yield of about 6.1%. Under the earlier structure, returns remained within the fund and gradually increased net asset value rather than being paid directly to investors.
Under the proposed structure, Grayscale will convert staking rewards into U.S. dollars every quarter. The trust will deduct expenses and sponsor fees before distributing the remaining proceeds to shareholders. The filing states that payments will not have a fixed amount because quarterly results will depend on the rewards received during each reporting period.
Fee Reductions Take Effect Before New Structure
Grayscale also confirmed fee reductions already introduced before the amendment announcement. The sponsor fee fell from 0.35% to 0.19% on June 25. The staking fee was also reduced from 23% to 7%, leaving a larger share of staking income available to shareholders.
The company also warned shareholders about possible tax effects linked to cash distributions. The filing advises investors to consult their own tax advisors before making decisions because quarterly cash payments may produce different tax outcomes under applicable rules.
The revised amendments are scheduled to become effective on August 7, 2026. Shareholders now have several weeks to review the updated trust terms before quarterly cash distributions begin under the revised structure.
SOL ETF Background and Staking Competition
Grayscale launched the SOL ETF as a private placement in November 2021. The fund traded over the counter for years before moving to NYSE Arca on October 29, 2025. After the listing, Grayscale began staking SOL holdings, allowing the trust to earn staking rewards for shareholders.
Grayscale had already introduced a similar staking model for its ETH ETF in January. The Solana ETF changes follow the same approach used for Ethereum, while GSOL faces competition from REX-Osprey SOL + Staking ETF, which trades under the ticker SSK and provides monthly staking income. Grayscale also warned that cash distributions may create tax differences compared with holding unstaked SOL or non-distributing staking products.
