Grayscale proposes cash payouts for ETH and SOL staking

• Grayscale Investments has proposed cash distributions from staking rewards for its Ethereum and Solana funds.
• The proposal would allow investors to receive staking income without handling crypto directly.
• The plan requires regulatory approval before it can be implemented.

Grayscale Investments has proposed distributing staking rewards as cash to investors in its Ethereum (CRYPTO:ETH) and Solana (CRYPTO:SOL) investment products.

The asset manager said the proposal would let eligible funds convert staking rewards into cash before distributing them to shareholders.

"We believe this structure would allow shareholders to benefit from staking rewards in a manner consistent with existing fund operations," Grayscale said.

The proposal has been submitted to regulators and cannot take effect unless it receives the necessary approvals.

Staking allows holders of proof-of-stake cryptocurrencies such as Ethereum and Solana to earn rewards by helping secure their blockchain networks.

Grayscale said cash distributions could simplify the process for investors who want exposure to staking rewards through regulated investment products.

The proposal reflects broader efforts by digital asset managers to expand the features available in crypto investment funds while working within existing regulatory frameworks.

At the time of reporting, Ethereum price was $1,909.07.