Grayscale has updated its Solana staking ETF to pay quarterly cash distributions to shareholders, the firm announced this week. The change comes with a sharp reduction in fees, though the exact new rate was not disclosed. The move mirrors the structure of Grayscale's existing Ethereum staking ETF, which already distributes cash on a quarterly basis.
Fee reduction
Grayscale described the fee cut as “sharp” but did not provide a specific percentage. The Solana staking ETF had previously charged a management fee that was higher than some competitors. By lowering costs, Grayscale is trying to keep the product competitive in a crowded market for staking-based exchange-traded funds.
Cash distributions
Switching to quarterly cash payouts instead of reinvesting staking rewards or distributing in-kind could appeal to income-focused investors. The Ethereum staking ETF has used the same model since its launch, and Grayscale appears to be standardizing its approach across staking products. Shareholders will receive cash payments each quarter, sourced from the staking rewards generated by the underlying Solana holdings.
The update gives Solana staking a more traditional ETF wrapper, which may attract institutional investors who prefer regular cash income over accumulating more tokens. Grayscale's Solana staking ETF is one of several products tracking the proof-of-stake network, but the fee reduction and distribution change could set a new baseline for the category. The firm has not said whether it plans similar updates for other staking ETFs.
The changes take effect immediately, according to Grayscale. No further modifications to the fund's investment objective or strategy were announced.
