Grayscale Locks In Monthly Staking Rewards Ahead of IRS Deadline
Grayscale's staking strategy has become more shareholder-friendly after an update to its trust agreement. The revised agreement, signed on August 6, makes staking the default for nearly every eligible asset held in the fund and paves the way for regular cash distributions.
The timing of this update was crucial as it occurred just four days before the August 10 IRS deadline for funds seeking the new tax treatment. This deadline change shifted the playing field for crypto funds, allowing them to stake assets without triggering fund-level tax.
However, there's a catch: staking rewards must be distributed to shareholders at least every quarter. Grayscale's revised agreement goes beyond this requirement, converting staking rewards into cash with monthly payouts planned.