Grayscale is turning its Solana staking ETF into something that actually pays you. The asset manager filed a prospectus supplement on July 17, 2026, outlining a Third Amended and Restated Trust Agreement for its Grayscale Solana Staking ETF, ticker GSOL, that introduces mandatory quarterly cash distributions of staking rewards to shareholders.
The amendment is expected to take effect on or around August 7, 2026. In plain terms: instead of staking rewards quietly accumulating inside the fund, Grayscale will now convert those rewards to cash and send the net proceeds to investors every quarter, or more frequently if it chooses.
## What the restructuring actually means
Here is how it works. GSOL stakes 100% of its SOL holdings, currently generating gross staking rewards of around 6.1% annually. Under the new structure, those rewards get liquidated to US dollars on a quarterly cadence, expenses and sponsor fees get deducted, and the remainder flows to shareholders as a cash distribution.
The catch, and it is a real one, is that distributions are not guaranteed. The amounts will fluctuate based on actual rewards received, which means they move with Solana’s network conditions, validator performance, and the prevailing staking yield at any given time.
Grayscale also used the filing to lock in a fee structure it had already begun rolling out. Effective June 25, 2026, the sponsor fee dropped from 0.35% to 0.19%. More meaningfully, the staking fee, the cut Grayscale takes from gross rewards before passing anything along, fell from 23% to 7%.
At 23%, Grayscale was keeping nearly a quarter of every staking reward before expenses. At 7%, the fund retains far more of the yield it generates, making the cash distribution policy substantially more attractive than it would have been under the old terms.
## GSOL’s road from private placement to NYSE Arca
Grayscale launched GSOL in November 2021 as a private placement vehicle. It spent years trading over the counter before Grayscale uplisted it to NYSE Arca on October 29, 2025, giving retail investors proper exchange access.
The cash distribution policy follows a template Grayscale already tested with its Ethereum Staking ETF, which began distributing staking rewards as cash in January 2026.
## What investors should watch
GSOL is not the only Solana staking ETF on the market. The REX-Osprey SOL + Staking ETF, trading under the ticker SSK, has already been offering monthly distributions, giving it a cadence advantage over GSOL’s quarterly schedule.
The tax angle is also worth flagging. Grayscale explicitly notes in the filing that cash distributions carry tax implications, and the fund encourages investors to consult tax advisors. Cash distributions from a staking ETF are likely treated as ordinary income in most jurisdictions, which is a different outcome than holding unstaked SOL or a non-distributing staking product.