Grayscale amended three staking ETFs on August 6 to mandate conversion of staking rewards into cash and distribution to shareholders at least quarterly. The products affected are the Grayscale Ethereum Staking ETF (ETHE), Grayscale Solana Staking ETF (GSOL), and Grayscale Avalanche Staking ETF (GAVA).
The amendments do not liquidate principal holdings of ETH, SOL, or AVAX. They apply only to staking rewards earned by the products. The three trusts currently intend to make distributions monthly, though the binding floor is quarterly.
Fund Size and Composition
ETHE held $1.22 billion in total assets as of June 30, with $999.96 million in staked ETH representing 81.7% of assets. GSOL held $101.16 million in total assets, with $101.05 million in staked SOL comprising 99.9% of assets. GAVA held $4.27 million in total assets, with $3.45 million in staked AVAX at 80.9% of assets.
Fee Structure
ETHE charges a 2.5% annual Sponsor fee, with Sponsor staking and validator fees deducted at 23% of gross rewards. GSOL deducts an aggregate 0.19% annual Sponsor fee plus 7% in staking-related fees. GAVA charges a 0.35% annual Sponsor fee.
Recent Distribution
ETHE paid approximately $9.4 million in distributions on January 6, equal to $0.083178 per share. That payout followed the sale of staking rewards earned from October 6 through December 31, 2025.
Tax Implications
The conversion to cash may create multiple tax consequences for US holders, including pro rata staking income when rewards are earned and pro rata capital gains or losses from trust sales of reward tokens. Tax disclosures caution that grantor-trust treatment is not guaranteed and flag potential unrelated business taxable income for tax-exempt holders. Non-US investors face unresolved sourcing and withholding questions.
Mechanism and Future Payouts
The amendments establish that reward tokens will be converted to cash, but do not specify how much will be sold in any future period. Future sales and payouts will depend on rewards actually received, the amount staked, protocol-level reward rates, token prices, and fee deductions.
