Grayscale Plans to Distribute Staking Rewards

Grayscale is seeking to change the rules governing its Solana Staking ETF. According to a filing submitted to the SEC, GSOL would distribute staking income to investors at least once every quarter.

Grayscale stakes all the SOL tokens held by the fund. The documents indicate that they currently generate an annual return of approximately 6.1%. Until now, these rewards have remained within the fund, gradually increasing its net asset value.

Under the proposed changes, staking rewards will be regularly converted into US dollars. Grayscale will deduct the fund’s expenses and sponsor fees, with the remaining amount distributed to shareholders.

The SEC notes that the payments will not be fixed. Their value will depend on the rewards earned during a given period, the performance of Solana network validators, and current staking yields.

Grayscale has also formalized fee reductions that it began introducing before announcing the proposed changes. Since June 25, the sponsor fee has been set at 0.19%, down from 0.35%. The staking fee has also been reduced from 23% to 7%, which could increase the amount paid to investors.

The new rules may have different tax implications. The company recommends that shareholders consult a tax adviser. The changes are expected to take effect on August 7.