Grayscale is setting up a quarterly cash showdown between Ethereum and Solana staking
Grayscale plans to amend its Ethereum and Solana staking fund trusts so staking rewards are converted to cash and paid out at least quarterly, starting around Aug. 7. The process would apply to the Grayscale Ethereum Staking ETF and Grayscale Solana Staking ETF, with distributions made after expenses not covered by the sponsor. The schedule sets a minimum frequency, not a fixed payout amount or date, since rewards vary over time. The goal is to create a clearer, apples-to-apples way to compare what each fund actually returns in net cash terms. The structure also fits IRS rules for grantor trusts that allow staking rewards to be distributed in cash at least quarterly. Under the proposed setup, investors would still recognize taxable staking income when the trust receives it, and selling ETH or SOL to fund payouts could also create capital gains or losses.
