Grayscale plans quarterly payouts from $1.1B staked assets for ETF holders
Grayscale will sell staking rewards at least quarterly for ETHE, GSOL and GAVA, funding cash distributions.
Grayscale has amassed more than $1.1 billion in staked cryptocurrency across its ETF products, and the firm now plans to convert the resulting rewards into recurring cash payouts for shareholders.
Under the updated mechanism, the ETHE, GSOL and GAVA funds must sell earned staking rewards at least once per quarter. That allows the funds to distribute cash without having to schedule sales of the underlying principal assets.
How it works
Instead of accumulating staking rewards in-kind, Grayscale will periodically liquidate those rewards and pass the proceeds to ETF holders. The approach is designed to provide a steady income stream while preserving the original token holdings.
- Applies to Grayscale Ethereum Trust (ETHE), Grayscale Solana Trust (GSOL), and Grayscale Avalanche Trust (GAVA).
- Rewards sales occur at least quarterly, with no set schedule for principal liquidation.
- Total staked assets across the affected funds exceed $1.1 billion.
The move reflects a broader trend of crypto asset managers using staking yield to generate distributions for investors, rather than relying solely on token price appreciation.