Grayscale ETHE Files Amendment to Enable Quarterly Staking Distributions

What Happened

• On July 17, 2026, Grayscale Investments Sponsors, LLC (the Sponsor) filed an 8-K reporting it intends to enter the Fourth Amended and Restated Declaration of Trust and Trust Agreement for Grayscale Ethereum Staking ETF (ETHE) on or around August 7, 2026.
• The Proposed Amendment would require the Trust to convert Staking Consideration to cash no less often than quarterly and promptly distribute the cash proceeds to shareholders, net of any Trust expenses not assumed by the Sponsor (including a portion of Staking Consideration paid to the Sponsor for facilitating staking).
• The Sponsor says the change is intended to conform the Trust’s staking program to IRS Revenue Procedure 2025-31 so the Trust can continue to be treated as a grantor trust for U.S. federal income tax purposes; the Sponsor has determined the amendment is not materially adverse to shareholders and is providing 20 days’ prior notice.

Key Details

• Filing date: July 17, 2026; Proposed Amendment execution anticipated on or about August 7, 2026.
• Frequency: Trust must reduce Staking Consideration to cash and distribute proceeds at least quarterly.
• Distributions: Amounts will vary and depend on staking proceeds actually received; distributions are net of Trust expenses not assumed by the Sponsor and may include a fee paid to the Sponsor.
• Related filings: Form of the Proposed Amendment filed as Exhibit 4.1; supplemental U.S. federal tax consequences and risk factors filed as Exhibits 99.1 and 99.2; prospectus supplement to follow.

Why It Matters

• For investors: ETHE holders may begin receiving regular cash distributions of staking rewards (quarterly at minimum), providing a potential cash return stream rather than accumulation of staking consideration inside the Trust.
• Tax and cash-impact considerations: Distribution amounts are uncertain and will be reduced by Trust expenses and any Sponsor fees; the amendment is driven by tax compliance (IRS Revenue Procedure 2025-31), so shareholders should consult tax advisors about how distributions could affect their tax situation.
• Corporate governance: The Sponsor believes the change is not materially adverse and is following the Trust Agreement’s notice procedures before implementing the amendment.