21Shares has confirmed it will distribute staking rewards to investors in its Solana exchange-traded fund, marking a significant milestone for U.S.-listed crypto ETFs. Holders of the 21Shares Solana ETF (TSOL) will receive $0.316871 per share, with payments scheduled for February 17, 2026.
The payout applies to shareholders on record as of February 13, 2026. According to the fund’s distribution schedule, February 12 serves as the declaration date, while February 13 marks both the ex-date and record date.
The distribution represents the first time 21Shares has passed Solana staking rewards directly to U.S. ETF investors as a cash payment through traditional brokerage accounts.
Key Takeaways
- 21Shares will distribute $0.316871 per share in Solana staking rewards to TSOL shareholders on February 17, 2026.
- The payout marks one of the first instances of a U.S.-listed Solana ETF delivering protocol-level staking income directly through brokerage accounts.
- Solana ETFs are differentiating themselves through staking yield, with issuers split between cash distributions and automatic reinvestment models.
- Staking rewards are generally treated as ordinary income for tax purposes, making structure and timing critical for investors.
A First for U.S. Solana ETFs
TSOL, carries a 0.21% expense ratio and stakes a portion of its underlying SOL holdings through regulated custodians, including Anchorage Digital Bank, BitGo New York Trust Company, and Coinbase Custody Trust Company.
With a net asset value recently around $8.01 per share, the $0.316871 payout may appear modest in dollar terms. However, the structure behind it is what sets it apart. Investors are receiving blockchain staking income without interacting with validators, managing wallets, or navigating unbonding periods.
Unlike Bitcoin ETFs, which cannot generate staking yield due to Bitcoin’s proof-of-work model, Solana operates on proof-of-stake. That allows ETF issuers to stake tokens held in custody and distribute rewards to shareholders.
Solana’s network staking yield has generally ranged between 5% and 8% annually, depending on validator performance and network conditions. This yield profile has become a central selling point for Solana-based ETFs in the United States.
Two Competing Models: Cash vs. Reinvestment
The Solana ETF market has split into two distinct approaches to staking rewards.
21Shares has opted for direct cash distributions, similar to dividend payments. Investors receive income periodically in their brokerage accounts, but each distribution may create a taxable event.
By contrast, Bitwise Asset Management reinvests staking rewards in its Bitwise Solana ETF, allowing compounding to lift net asset value over time without issuing cash. This structure generally defers taxes until shares are sold.
Other competitors are also competing aggressively on fees. VanEck launched its Solana ETF with a 0.30% sponsor fee but temporarily waived it on initial assets through early 2026.
Grayscale Investments reduced its staking fee during a promotional window, while Franklin Templeton has waived certain staking-related fees on its Solana product for a limited period. The REX Shares and Osprey-backed Solana staking ETF entered the market with a higher expense ratio but was first to navigate the regulatory approval path.
Collectively, U.S. Solana ETFs now manage approximately $1.19 billion in assets, representing roughly 1.38% of Solana’s total market capitalization as of early 2026.
Tax and Structural Considerations
Although staking distributions resemble dividends operationally, they are not treated as qualified dividends for U.S. tax purposes. The Internal Revenue Service generally considers staking rewards to be ordinary income based on their fair market value at the time they are received.
That distinction is important for investors weighing cash distributions against reinvestment structures. A cash payout like TSOL’s may provide immediate income but can increase short-term tax liability. A reinvestment model defers taxation but offers no immediate yield payment.
There are also operational risks tied to staking. Staked SOL may be subject to lock-up or unbonding periods. Validator failures or slashing events could reduce rewards or affect underlying assets. Additionally, TSOL is not registered under the Investment Company Act of 1940, meaning it does not carry all the same protections as traditional mutual funds.
A Broader Shift in Crypto ETFs
The TSOL payout underscores a growing divide among crypto ETFs. Bitcoin funds remain pure price-exposure vehicles with no yield component. Ethereum ETFs have begun exploring staking distributions, but Ethereum’s network yield typically sits in the 3% to 5% range—lower than Solana’s.
Solana ETFs, by contrast, now offer a hybrid structure: price exposure combined with protocol-level income delivered through regulated market infrastructure.
For investors, the $0.316871 distribution is more than a quarterly payment. It signals that staking income—once limited to on-chain participants—is becoming a standardized feature inside brokerage accounts.
With additional quarterly distributions scheduled throughout 2026, 21Shares is positioning TSOL not just as a growth vehicle tied to SOL’s price, but as an income-generating crypto ETF competing directly with traditional yield products.
