Grayscale Solana Staking ETF (GSOL) Proposes Amendment for Quarterly Staking Distributions

What Happened
Grayscale Investments Sponsors, LLC filed an 8-K on July 17, 2026 announcing a proposed Third Amended and Restated Declaration of Trust and Trust Agreement for Grayscale Solana Staking ETF (the Trust). The Sponsor intends to execute the Proposed Amendment on or around August 7, 2026 with CSC Delaware Trust Company as Trustee. The change would require the Trust to convert staking consideration to cash at least quarterly and promptly distribute the net cash proceeds of staking rewards to shareholders (after Trust expenses and any amounts paid to the Sponsor for facilitating staking).

Key Details

• Sponsor: Grayscale Investments Sponsors, LLC; Trustee: CSC Delaware Trust Company.
• Intended execution date: on or around August 7, 2026; Sponsor provided 20 days’ prior notice to shareholders per the Trust Agreement.
• Main change: require the Trust to reduce Staking Consideration to cash no less often than quarterly and promptly distribute cash proceeds net of Trust expenses (including possible payments to the Sponsor).
• Reason given: to conform to IRS Revenue Procedure 2025-31 so the Trust may continue to qualify as a grantor trust while engaging in staking. A prospectus supplement under Rule 424(b)(3) will be filed upon execution; exhibits (form amendment, tax disclosure, supplemental risk factors) were attached to the 8-K.

Why It Matters

• Distributions: If approved and implemented, shareholders could receive periodic cash distributions of staking rewards rather than having those rewards retained in-kind. The amounts and timing will depend on actual staking receipts and Trust expenses and therefore cannot be predicted with certainty.
• Taxes and risks: The Sponsor says the amendment is intended to preserve the Trust’s grantor trust tax status, but shareholders are advised to consult their tax advisors because tax consequences may change. The amendment also includes risk-factor updates and other conforming changes to support the staking program and mandatory distribution framework.
• Investor takeaway: This is a structural change that may affect how staking rewards are delivered to investors (cash distributions vs. retained consideration) and could influence after-tax returns and cash flow timing, but distributions are variable and not guaranteed.