⚪️ Converting Grayscale’s Solana Staking ETF into a product that distributes regular dividends to shareholders

Grayscale has filed an application with the U.S. Securities and Exchange Commission (SEC), planning to convert its Solana Staking ETF into a product that can periodically pay out returns to shareholders. The fund outlines amendments to GSOL that allow it to convert staking rewards into cash at least once every quarter and distribute net proceeds to the relevant holders.
Grayscale Investments Management Company submitted a new proposal to the SEC this week. The document is intended to adjust the ETF’s original structure, requiring the trust to convert its staking profits into cash at least every quarter.
The company’s goal is to distribute these returns to shareholders on a basis after deducting fees.
🔸 Grayscale restructures GSOL to provide more frequent returns
According to the document, Grascale has started staking its entire SOL holdings, and the annualized yield of these staking rewards is currently about 6.1%. Under the old structure, accumulated returns within the fund would gradually be reflected in the net asset value.
However, under the proposed new trust agreement, Grayscale would cash out these rewards into USD on a quarterly basis, after deducting trust expenses and sponsor fees, and then distribute profits directly to investors.
The SEC’s filing specifically cautions that no one should expect fixed dividends. The amounts to be distributed will depend on the staking consideration actually received by the trust in each period, and no prediction can be made in advance.
Based on the filing, the amount required to be paid each quarter will vary depending on the performance of Solana validators and the staking yield at that time.
Grayscale also used the same filing to formalize the fee changes it had already begun to introduce. After June 25, the sponsor fee was reduced from 0.35% to 0.19%. Grayscale also cut staking fees from 23% to 7%, thereby increasing investors’ potential dividends.