21Shares Delivers $0.32 Per Share in Solana Staking Yield
21Shares, a subsidiary of digital asset prime broker FalconX, has announced the first staking reward distribution for its Solana ETF (TSOL), paying $0.316871 per share to holders on record as of February 13, 2026. The payment, scheduled for delivery on February 17, represents something Bitcoin ETFs structurally cannot offer and Ethereum ETFs only recently began exploring: protocol-level passive income distributed through a traditional brokerage account.
TSOL, which trades on the Cboe BZX Exchange with a 0.21% expense ratio, stakes a portion of its SOL holdings through a trio of institutional custodians: Anchorage Digital Bank, BitGo New York Trust Company, and Coinbase Custody Trust Company. The fund launched in November 2025 and has been quietly building toward this moment while competitors chose different paths to the same destination.
Why the First Distribution Matters More Than Its Dollar Amount
The $0.32 payout might look modest against TSOL's $8.01 net asset value per share. But the precedent it sets is enormous: a U.S.-regulated ETF is now distributing blockchain staking rewards as cash payments to shareholders, no wallet required, no validator setup, no unbonding periods.
This is the first time 21Shares has paid out SOL staking rewards to American investors through traditional financial rails. The company, which listed the world's first physically-backed crypto exchange-traded product in 2018, has scheduled five distributions throughout 2026, with quarterly payments following in March, June, September, and December.
For context, the Solana network currently offers staking yields in the range of 5-8% annually, roughly double what Ethereum validators earn. That spread is a significant part of why at least 16 Solana ETFs now exist in the U.S. market, each positioning staking as a core value proposition rather than a bonus feature.
The Solana ETF Fee War and the Two Schools of Staking
The competitive landscape among Solana ETFs has fractured into two distinct philosophies on what to do with staking rewards, and the split reveals a deeper debate about how crypto yield should reach retail investors.
The Cash Distribution Camp: 21Shares (TSOL) pays staking rewards directly to shareholders as cash distributions. Investors receive the yield in their brokerage accounts, similar to a stock dividend. This approach gives holders flexibility but creates taxable events at each distribution.
The Reinvestment Camp: Bitwise's Solana ETF (BSOL, 0.20% expense ratio) stakes 100% of its holdings but reinvests all rewards back into the fund. There are no cash payouts. Instead, the compounding yield lifts the ETF's NAV over time, similar to how a growth stock retains earnings. This defers taxes until the investor sells.
The fee war is equally aggressive. VanEck launched its Solana ETF (VSOL) with a 0.30% sponsor fee but waived it entirely through February 2026 on the first $1 billion in assets. Grayscale's GSOL charges 0.35% but reduced its staking fee from 23% to 5% during a promotional period. Franklin Templeton's FSOL waives its 15% staking reward fee through May 2026 on the first $1 billion. Even the REX-Osprey SOL Staking ETF (SSK), the first U.S. Solana staking ETF approved, charges a higher 0.75% but pioneered the regulatory path that others followed.
Across all issuers, total Solana ETF assets under management have climbed to approximately $1.19 billion as of early 2026, representing about 1.38% of SOL's total market capitalization.
What TSOL Holders Should Know About the Mechanics
The distribution timeline follows a standard ETF dividend calendar: a declaration date (February 12), an ex-date and record date (both February 13), and a payable date (February 17). Anyone who purchased TSOL before the ex-date is eligible.
But staking rewards are not dividends in the traditional sense, and the distinction matters for taxes. The IRS treats staking rewards as ordinary income at the fair market value when received, not as qualified dividends eligible for lower capital gains rates. This is an important consideration when comparing 21Shares' cash distribution approach against Bitwise's reinvestment model, where the tax event is deferred.
The risk disclosures in 21Shares' announcement are also worth reading carefully. Staked SOL may be subject to lock-up or unbonding periods during which it cannot be sold. Validator failures, smart contract vulnerabilities, or slashing events could result in partial or complete loss of staked assets and rewards. The fund is not registered under the Investment Company Act of 1940, meaning it lacks some protections that traditional ETFs and mutual funds offer.
For investors already earning staking rewards through crypto card platforms like Crypto.com or ether.fi, the TSOL distribution offers a useful comparison point. Direct on-chain staking through a self-custody wallet typically delivers higher gross yields because there are no management fees or staking fee deductions. But the ETF wrapper removes operational complexity: no key management, no validator selection, no gas fees, and seamless integration with tax-reporting software.
How This Shifts the Broader Crypto ETF Landscape
The Solana ETF staking reward marks a widening gap between what different crypto ETFs can structurally deliver.
Bitcoin ETFs remain pure price-exposure vehicles. BTC uses proof-of-work, so there is no staking yield to distribute. The value proposition begins and ends with price appreciation (or depreciation).
Ethereum ETFs have recently entered the staking conversation, with 21Shares also publishing a 2026 distribution schedule for its Ethereum ETF (TETH). But Ethereum's staking yields sit around 3-5% annually, roughly half of Solana's, making the passive income argument less compelling on a percentage basis.
Solana ETFs now occupy a unique position: they combine price exposure with meaningful protocol-level yield, delivered through regulated financial infrastructure. This positions SOL ETFs less like Bitcoin ETFs and more like a hybrid between a commodity fund and an income-generating bond fund.
The broader implication is that "crypto ETF" is no longer a single category. It's fracturing into growth vehicles (BTC), moderate yield instruments (ETH), and higher yield income products (SOL), each with different risk profiles, tax treatments, and investor use cases.
FAQ
How much did 21Shares pay in TSOL staking rewards? The distribution was $0.316871 per share, payable on February 17, 2026 to holders of record on February 13, 2026.
How often will TSOL distribute staking rewards? 21Shares has scheduled five distributions in 2026: February, March, June, September, and December, with the February payout being the first.
What is the difference between TSOL and BSOL staking approaches? TSOL distributes staking rewards as cash payments to shareholders. BSOL reinvests all staking rewards back into the fund, compounding them to increase the ETF's net asset value rather than paying cash.
Are Solana ETF staking rewards taxed as dividends? No. The IRS treats staking rewards as ordinary income at the fair market value when received, which is generally taxed at a higher rate than qualified dividends.
What is TSOL's expense ratio? TSOL charges 0.21%, which is fully waived through October 8, 2026.
Overview
21Shares has paid its first Solana ETF staking reward of $0.32 per share, delivering blockchain-native yield through a traditional brokerage account. The distribution, one of five scheduled for 2026, comes as Solana ETFs collectively surpass $1.19 billion in assets and the competitive landscape splits between cash distribution and reinvestment models. With SOL staking yields running 5-8% annually (roughly double Ethereum's), the Solana ETF category is establishing itself as crypto's first genuine passive income ETF product, distinct from Bitcoin's pure price-exposure model. The fee war among issuers, with multiple funds waiving fees on the first $1 billion in assets, suggests the real competition is just beginning.
Recommended Reading
- Gemini Staking Goes Live in New York, Unlocking Crypto Yield in America's Toughest Regulatory Market
- Ethereum's Staking Ratio Surpasses 30% for the First Time, Locking $120 Billion and Tightening Liquid Supply
- Solana Claims the Throne as Crypto's Top Payment Rail With 750% Growth, Leaving Web2 Giants in the Dust
