Grayscale Avalanche Staking ETF Amends Trust to Distribute Staking Rewards

What Happened
Grayscale Avalanche Staking ETF (GAVA) filed an 8-K reporting Amendment No. 2 to its Trust Agreement on August 6, 2026. The Sponsor, Grayscale Investments Sponsors, LLC, and the Trustee, CSC Delaware Trust Company, amended the Trust Agreement to require the Trust to convert staking consideration to cash at least quarterly and to distribute net cash proceeds of staking rewards to shareholders. The Trust currently intends to distribute net staking proceeds monthly, but no less than quarterly.

Key Details

• Amendment date: August 6, 2026; filing date: August 7, 2026 (8-K, Item 1.01).
• Distribution frequency: Trust intends monthly distributions of net staking proceeds, with a required minimum of quarterly distributions.
• Deductions: Distributions = staking consideration received minus the Staking Fee and other Trust expenses (including portions payable to the Sponsor for facilitation).
• Disclosure: The Amendment is attached as Exhibit 4.1; the Trust plans to file a prospectus supplement under Rule 424(b)(3) to update investor disclosure. Shareholders are advised to consult tax advisors about any tax consequences.

Why It Matters
This amendment creates a formal, recurring cash-flow mechanism for GAVA investors by converting staking rewards into cash distributions rather than retaining staking consideration in-kind. That can provide regular income to shareholders, but the amount and timing depend on actual staking rewards and allowable expense deductions (including fees paid to the Sponsor). Distributions may have tax consequences for investors, and amounts are variable and cannot be predicted with certainty.