Grayscale Ethereum Staking Mini ETF (ETH) to start paying out staking rewards

Rhea-AI Filing Summary

Grayscale Ethereum Staking Mini ETF describes a proposed Third Amended and Restated Declaration of Trust and Trust Agreement expected to be effective on or around August 7, 2026. This amendment would replace the current Trust Agreement in full.

The change would require the Trust to begin regular cash distributions of the net cash proceeds of staking rewards to shareholders. The Trust must convert Staking Consideration to cash no less often than quarterly and promptly distribute the cash proceeds after deducting Trust expenses not assumed by the Sponsor, including a portion of the Staking Consideration paid to the Sponsor for facilitating staking arrangements. The amount of each distribution will depend on staking proceeds received. Shareholders are encouraged to consult tax advisors about potential tax consequences. Shares remain listed on NYSE Arca under the symbol ETH, and the Trust continues to operate outside the Investment Company Act of 1940.

Key Figures

Effective date of proposed amendment: August 7, 2026

1 metrics

Effective date of proposed amendment August 7, 2026 Date on or around which the Third Amended and Restated Trust Agreement is intended to become effective

Key Terms

Staking Consideration, staking rewards, mandatory distribution framework, Declaration of Trust and Trust Agreement

4 terms

Staking Consideration financial

"requiring the Trust to reduce the Staking Consideration held by the Trust to cash"

staking rewards financial

"regular distributions of the net cash proceeds of staking rewards to Shareholders"

Staking rewards are incentives given to individuals who commit their cryptocurrency holdings to support a blockchain network's operations, such as confirming transactions and maintaining security. Think of it like earning interest or dividends for locking up your savings or investments, encouraging people to keep their assets engaged in keeping the system running smoothly. For investors, staking rewards provide a way to earn passive income while helping to secure the network.

mandatory distribution framework financial

"changes to facilitate the Trust’s staking program and mandatory distribution framework"

Declaration of Trust and Trust Agreement regulatory

"Third Amended and Restated Declaration of Trust and Trust Agreement"

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 07/17/2026 - 04:25 PM Accepted by SEC EDGAR 07/17/2026 - 04:04 PM Learn about SEC filing dates

FAQ

What change is Grayscale Ethereum Staking Mini ETF (ETH) proposing to its Trust Agreement?

The Trust plans a Third Amended and Restated Trust Agreement that replaces the prior version and introduces a framework for regular cash distributions of net staking rewards to shareholders, while making conforming changes to support its staking program and distribution process.

When will the proposed amendment for Grayscale Ethereum Staking Mini ETF (ETH) take effect?

The Sponsor intends the amendment to be effective on or around August 7, 2026. From that effective date, the new Trust Agreement terms, including the regular distribution framework for staking rewards, would govern the Trust’s operations and shareholder distributions.

How will staking rewards be distributed under the new framework for ETH?

The Trust will convert Staking Consideration to cash no less often than quarterly and promptly distribute the cash proceeds, after deducting Trust expenses not assumed by the Sponsor, to shareholders. Distribution amounts will depend on actual staking rewards received each period.

Does the Sponsor receive any portion of staking rewards in the ETH Trust?

Yes. The Trust may pay a portion of the Staking Consideration to the Sponsor as consideration for facilitating staking arrangements. Remaining net cash proceeds, after expenses not assumed by the Sponsor, are then distributed to shareholders under the proposed framework.

What tax considerations are mentioned for investors in Grayscale Ethereum Staking Mini ETF (ETH)?

Investors are advised to consult their tax advisors regarding any tax consequences from the proposed amendment and resulting distributions of staking rewards. Tax impacts may vary by investor, and the Trust does not specify individual tax outcomes in this disclosure.

Is Grayscale Ethereum Staking Mini ETF (ETH) a registered investment company under the 1940 Act?

No. The Trust explicitly states it is not an investment company registered under the Investment Company Act of 1940. It instead operates pursuant to its Trust Agreement and related documents, with shares listed for trading on NYSE Arca under the symbol ETH.

Where are the shares of Grayscale Ethereum Staking Mini ETF (ETH) traded?

Shares are listed on NYSE Arca under the symbol ETH. Investors can buy and sell the Trust’s shares on that exchange, subject to market conditions and the risks described in the prospectus and incorporated reports.

PROSPECTUS SUPPLEMENT Filed Pursuant to Rule 424(b)(3)
Registration No. 333-278878

Grayscale Ethereum Staking Mini ETF

Prospectus Supplement No. 1 Dated July 17, 2026
To the Prospectus Dated September 12, 2025

This prospectus supplement (this “Prospectus Supplement”) forms part of, and should be read together with, the prospectus of Grayscale Ethereum Staking Mini ETF (the “Trust”), dated September 12, 2025 (as supplemented or amended from time to time, the “Prospectus”). Capitalized terms used but not defined in this Prospectus Supplement have the meanings given to them in the Prospectus.

IMPORTANT NOTICE REGARDING PROPOSED AMENDMENT TO AMEND AND RESTATE THE TRUST AGREEMENT

On or around August 7, 2026 (the “Effective Date”), Grayscale Investments Sponsors, LLC (the “Sponsor”), as sponsor of Grayscale Ethereum Staking Mini ‎ETF (the “Trust”), intends to enter into the Third Amended and Restated Declaration of Trust and Trust Agreement (the “Proposed Amendment”) among CSC Delaware Trust Company, the trustee (the “Trustee”) of the Trust, which will amend and restate in its entirety the Second Amended and Restated Declaration of Trust and Trust Agreement, dated September 25, 2025, as amended (the “Trust Agreement”).

The Proposed Amendment would amend and restate the Trust Agreement, effective as of the Effective Date, to, among other things, (i) provide for the Trust to commence regular distributions of the net cash proceeds of staking rewards to Shareholders, by requiring the Trust to reduce the Staking Consideration held by the Trust to cash no less often than quarterly and to promptly distribute the cash proceeds, net of any Trust expenses not assumed by the Sponsor (including, for example, paying a portion of the Staking Consideration to the Sponsor as consideration for its facilitation of the Staking Arrangements), to the Shareholders, and (ii) make certain other conforming changes to facilitate the Trust’s staking program and mandatory distribution framework. The amount of such distributions will depend on the Staking Consideration actually received by the Trust during each period and cannot be predicted with certainty.

Shareholders are advised to discuss any tax consequences relating to their investment in the Trust as a result of the Proposed Amendment, if and when executed, with their tax advisors.

Except as expressly updated or supplemented by this Prospectus Supplement, the Prospectus remains unchanged. To the extent of any inconsistency between this Prospectus Supplement and the Prospectus, this Prospectus Supplement will control.

Shares of the Trust are listed on NYSE Arca, Inc. (“NYSE Arca”) under the symbol “ETH.”

___________________________

Investing in the Shares involves significant risks. You should carefully consider the risk factors described beginning on page 17 in the prospectus, in “Part I—Item 1A. Risk Factors” beginning on page 54 in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, in “Part II—Item 1A. Risk Factors” beginning on page 25 in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, in any applicable prospectus supplement and in the other documents incorporated or deemed incorporated by reference herein before you invest in the Shares.

These securities have not been approved or disapproved by the Securities and Exchange Commission or any state securities commission nor has the Securities and Exchange Commission passed upon the adequacy or accuracy of the Prospectus or this Prospectus Supplement. Any representation to the contrary is a criminal offense.

The Trust is not an investment company registered under the Investment Company Act of 1940, as amended.

Please retain this Prospectus Supplement for future reference.

Date: July 17, 2026