Grayscale Ethereum Staking ETF Amends Trust, Plans Regular Staking Distributions

What Happened
Grayscale Ethereum Staking ETF (ETHE) filed an 8‑K dated August 7, 2026 reporting that the Sponsor (Grayscale Investments Sponsors, LLC) and the Trustee (CSC Delaware Trust Company) entered into a Fourth Amended and Restated Declaration of Trust and Trust Agreement on August 6, 2026. The new agreement amends and restates the prior trust agreement and requires the Trust to convert staking rewards (the “Staking Consideration”) to cash and distribute the net cash proceeds to shareholders on a regular schedule.

Key Details

• Agreement: Fourth Amended and Restated Declaration of Trust and Trust Agreement, effective August 6, 2026.
• Conversion & distribution: Trust must reduce Staking Consideration to cash no less often than quarterly and promptly distribute net cash proceeds to shareholders.
• Timing: Trust intends to distribute net staking proceeds monthly, but no less often than quarterly.
• Fees & expenses: Distributions will be net of a Staking Fee and other Trust expenses (the Sponsor may receive a portion of Staking Consideration as payment for facilitating staking).
• Disclosure: The Trust intends to file a prospectus supplement under Rule 424(b)(3) to update public disclosures.

Why It Matters
For shareholders, this change means staking rewards will be converted to cash and regularly paid out rather than retained in-kind by the Trust. The size and timing of distributions depend on actual staking rewards and expenses and therefore are variable and not guaranteed. Shareholders should note the deduction of the Staking Fee and other expenses from distributions and consult tax advisors about possible tax consequences from these cash distributions.