Grayscale Investments, an American digital currency asset management company has formally updated the structure of its Ethereum Staking Mini ETF (NYSE: ETH) after filing a prospectus supplement with the U.S. Securities and Exchange Commission (SEC) on August 7, allowing the fund to begin distributing cash generated from Ethereum staking rewards to shareholders.
The filing follows the execution of a revised trust agreement on August 6, which requires the ETF to periodically convert staking rewards into cash and distribute the proceeds to investors. According to the filing, Grayscale currently intends to make those distributions monthly, although payouts will occur at least once every quarter.
The filing does not specify when the first staking reward distribution will be made.
Source: sec.gov
The amendment also introduces a new staking fee, allowing a portion of staking rewards to be deducted before distributions are made.
The latest filing puts into effect changes Grayscale first proposed in July, when the asset manager disclosed plans to amend the trust agreements governing its Ethereum and Solana staking ETFs.
The filing also says shareholders may be required to recognize taxable income from staking rewards under current IRS guidance, including in situations where the timing of distributions and tax obligations may not fully align.
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