Grayscale Locks In Monthly Rewards Ahead of IRS Deadline

Grayscale's staking strategy has become more shareholder-friendly after it updated its trust agreement. The revised agreement makes staking the default approach for nearly every eligible asset held in the fund, paving the way for regular cash distributions.

The update was signed on August 6, just four days before the August 10 IRS deadline for funds seeking new tax treatment. This timing is crucial as it allows Grayscale to align with the IRS framework and offer shareholders recurring cash payouts from staking rewards.

Grayscale's revised agreement goes a step further than the quarterly distributions required by the IRS rules published last November. Instead, staking rewards will be converted into cash with monthly payouts planned.

This move builds on an initiative that began in October 2025, when Grayscale became the first U.S. issuer to activate staking within its spot crypto funds. Since then, the firm's Mini ETF has generated $27.3 million in net staking rewards, according to Grayscale data. Net staking rewards currently stand at 2.61% annually after fees.

Grayscale had staked 80.8% of its 839,556 ETH holdings as of August 6, with approximately 161,000 ETH remaining unstaked to support redemptions, operational requirements, and fees.