Overview
- Grayscale filed prospectus supplements on July 17 proposing trust amendments that would require ETHE and GSOL to sell staking rewards and distribute net cash to shareholders at least quarterly, with the changes expected to take effect on or around August 7, 2026.
- ETHE has already converted and paid out staking rewards to shareholders earlier in 2026, with five disclosed cash distributions through May 6 totaling $19,250,030, and the filing would formalize that practice into a minimum schedule.
- Under the proposal GSOL would stop retaining staking rewards inside the trust or making in-kind payouts and instead sell SOL rewards regularly and remit cash after fees and expenses, shifting how investors receive Solana staking returns.
- If the trusts keep grantor-trust tax treatment, U.S. holders will generally recognize their pro rata share of staking rewards as taxable income when the trust receives them and may also incur capital gains or losses when ETH or SOL is sold to fund payments.
- Actual per-share payouts will vary with how much of each fund is staked, network reward rates, the price at conversion and deductions for sponsor, custodian and staking charges, so investors will watch the first GSOL record and payment dates and subsequent ETHE payouts to see how the new cadence works in practice.