Grayscale Boosts Shareholder Rewards with New Staking Update

Grayscale has updated its staking strategy to make it more shareholder-friendly. The revised trust agreement was signed on August 6, just four days before the August 10 IRS deadline for funds seeking new tax treatment.

The update allows Grayscale to stake nearly every eligible cryptocurrency held in the fund by default, paving the way for regular cash distributions. Staking rewards will be converted into cash with monthly payouts planned, exceeding the quarterly distribution requirement set by the IRS.

Grayscale's revised agreement builds on its earlier initiative to activate staking within its spot crypto funds. Since October 2025, the firm's Mini ETF has generated $27.3 million in net staking rewards, with annual returns of 2.61% after fees. As of August 6, the fund had staked 80.8% of its 839,556 ETH holdings.

However, competition from firms like Morgan Stanley is increasing fee pressure. Morgan Stanley has launched Ethereum and Solana funds charging 0.14%, narrowly undercutting Grayscale's 0.15% fee.