Grayscale has introduced mandatory quarterly cash payouts for its Solana Staking ETF (GSOL) following a significant fee reduction from 23% to 7%, a move that aligns the product with its Ethereum Staking ETF (ETHE) strategy. The restructuring aims to convert staking rewards into regular income distributions for investors.
Details of the GSOL Changes
According to Grayscale's July 17, 2026 prospectus supplement, the amended trust agreement for GSOL will take effect near August 7, 2026. GSOL stakes the entirety of its SOL holdings, which currently yield approximately 6.1% in gross staking rewards annually. These rewards will now be converted to U.S. dollars and distributed quarterly after deducting expenses and fees.
The sponsor fee on GSOL has been cut almost in half, from 0.35% to 0.19%, while the staking fee, previously at 23%, has dropped to 7%. These changes enhance the value of cash payouts for shareholders but come with a caveat: distributions will fluctuate based on network conditions, validator performance, and actual staking yields, making income less predictable.
ETHE has already been distributing staking rewards as cash since January 2026, setting a precedent for GSOL’s new approach. The adoption of mandatory cash distributions signals a strategic shift by Grayscale towards generating regular income streams from staking rewards for their crypto ETFs.
