Grayscale’s Solana ETF restructures to distribute staking rewards quarterly

Grayscale Asset Manager filed the new proposal with the Securities and Exchange Commission this week. The filing sought to change the ETF’s original structure, requiring the trust to convert its staking profits into cash at least quarterly.

The firm aims to distribute those proceeds, net of expenses, to shareholders. 

Grayscale restructures GSOL to offer frequent rewards

Grascale began staking all of its SOL holdings, and those staking rewards currently yield approximately 6.1% annually, according to filings. Under the old structure, the yield accrued within the fund was reflected gradually in net asset value.

However, under the new proposed trust agreement, Grayscale will liquidate those rewards into dollars on a quarterly cadence, subtract trust expenses and sponsor fees, and distribute the profits directly to investors.

The U.S. Securities and Exchange Commission filing is careful to note that nobody should expect a fixed payout. The amount to be distributed will depend on the staking consideration actually received by the trust during each period and cannot be predicted with certainty.

According to the filing, the amount to be paid out each quarter will vary depending on validator performance on Solana and the prevailing staking yield at the time.

Grayscale used the same filing to formalize fee changes it had already begun phasing in before the amendment was announced. The sponsor fee dropped from 0.35% to 0.19% as of June 25. Grayscale also reduced the staking fee from 23% to 7%, increasing the potential payouts for investors. 

However, Grayscale also noted that the new structure may result in different tax implications for investors. The firm advised its shareholders to consult their own tax advisors about the consequences of the new fund agreements.

The proposed changes will be effective on August 7, giving shareholders a few weeks to weigh what a quarterly Solana income stream actually means for their portfolios.

Grayscale’s SOL ETF

Grayscale launched the SOL ETF in November 2021 as a private placement and spent years trading over the counter before finally uplisting to NYSE Arca on October 29, 2025. The fund gave ordinary investors direct exchange access, and shortly after that transition, Grayscale began staking its SOL. 

Earlier that January, Grayscale had already implemented the same strategy for its ETH ETF, making the implementation of the SOL ETF more of a copy-and-paste of an already working blueprint.