Grayscale Revises GSOL Prospectus to Add Mandatory Quarterly Cash Payouts From Solana Staking Rewards

Grayscale is redesigning the payout mechanics of its Grayscale Solana Staking ETF (GSOL) so staking rewards translate into cash in investors' accounts. In a prospectus supplement filed July 17, 2026, the firm detailed a Third Amended and Restated Trust Agreement that would require GSOL to make quarterly cash distributions sourced from staking rewards. The change is expected to take effect on or around August 7, 2026. Under the updated structure, GSOL will continue staking 100% of its SOL, which Grayscale says is currently generating gross staking rewards of about 6.1% per year. Instead of leaving rewards to accumulate inside the fund, GSOL would convert the rewards to U.S. dollars on a quarterly schedule, deduct expenses and sponsor fees, and distribute the remaining net proceeds to shareholders. Grayscale also retains the option to distribute more frequently. The filing emphasizes that payouts are not guaranteed. Distribution amounts will vary with the rewards actually received, reflecting Solana network conditions, validator performance, and prevailing staking yields. Grayscale also reaffirmed fee reductions it had already begun implementing. Effective June 25, 2026, the sponsor fee was cut to 0.19% from 0.35%. The staking fee—the portion taken from gross staking rewards before any pass-through—was reduced to 7% from 23%, meaning a larger share of the yield can flow to investors under the cash distribution policy. GSOL began in November 2021 as a private placement and traded over the counter for several years. Grayscale uplisted the product to NYSE Arca on October 29, 2025, expanding access for retail investors. The move mirrors a structure Grayscale has already used in its Ethereum Staking ETF, which began paying staking rewards out as cash in January 2026. Investors may also compare GSOL's quarterly schedule with competing products. The REXOsprey SOL + Staking ETF (SSK) has been offering monthly distributions. Grayscale additionally highlighted potential tax consequences. The firm noted that cash distributions may have tax implications and urged investors to consult tax advisors. In many jurisdictions, cash payouts from a staking ETF may be treated as ordinary income, which can differ from holding unstaked SOL or using a staking product that does not distribute.