Grayscale Investments has filed a prospectus supplement with the SEC to amend the trust agreement for its Grayscale Solana Staking Spot ETF (GSOL), introducing a mechanism to cash out staking rewards and distribute them to shareholders at least once per quarter. The amendment is expected to take effect around August 7, 2026. Under the new framework, GSOL will convert staking rewards from its SOL holdings into cash, deduct sponsor fees and other expenses, and distribute the net amount to shareholders. The filing notes that distribution amounts depend on actual rewards received during each period and are not guaranteed.
Fee Reductions Boost Investor Returns
Alongside the distribution change, Grayscale has significantly reduced fees. Effective June 25, 2026, the sponsor fee for GSOL was cut from 0.35% to 0.19%. More notably, the staking fee — Grayscale's share of staking rewards — was slashed from 23% to 7%. Previously, Grayscale retained roughly a quarter of staking rewards before passing the remainder to investors. The reduction is expected to substantially improve the net yield for shareholders. GSOL currently stakes 100% of its SOL holdings, with an estimated annual gross staking yield of approximately 6.1%.
Background and Competitive Landscape
GSOL was originally launched as a private placement trust in November 2021 and traded over-the-counter for years. It listed on the NYSE Arca on October 29, 2025, giving retail investors exchange access. The quarterly cash distribution model mirrors the framework Grayscale introduced for its Ethereum Staking Spot ETF in January 2026. However, competitor REX Osprey SOL+ Staking Spot ETF already offers monthly distributions, giving it an edge in distribution frequency. The changes aim to make GSOL more attractive as the U.S. regulatory environment for crypto ETFs evolves, with Japan recently passing a financial instruments law amendment that classifies crypto assets as financial products for the first time, paving the way for ETF listings there by 2027.