Solana ETF Staking Rewards: 21Shares’ Historic $0.32 Payout and What It Means for 2026

The Announcement: $0.32 Per Share on February 17

21Shares has confirmed it will distribute staking rewards to investors in its Solana exchange‑traded fund (TSOL), with a payout of $0.316871 per share scheduled for February 17, 2026. Shareholders of record as of February 13 qualify for the distribution, which was declared on February 12; February 13 also serves as the ex‑date. This marks one of the first instances where a U.S.‑listed Solana ETF has passed protocol‑level staking income directly into traditional brokerage accounts without requiring investors to manage wallets, validators or unbonding periods.

At TSOL’s recent net asset value of approximately $8.01 per share, the payout equates to roughly 4% annualized yield on a quarterly basis, aligning with Solana’s broader network staking returns of 5–8% depending on validator performance and conditions. The rewards stem from SOL holdings staked through regulated custodians including Anchorage Digital Bank, BitGo New York Trust Company and Coinbase Custody Trust Company, underscoring the institutional‑grade infrastructure behind the product.

Why This Is a Big Deal for Crypto ETFs

The First Native Yield for U.S. Solana Holders

Traditional Bitcoin ETFs offer zero yield since Bitcoin uses proof‑of‑work, while Ethereum ETFs have only recently begun exploring staking distributions with yields around 3–5%. Solana ETFs, by contrast, deliver 7% gross staking returns net of roughly 4% network inflation, providing a real yield edge that appeals to income‑focused institutional and retail investors alike. 21Shares’ cash payout structure treats staking rewards like dividends, creating immediate income streams but potentially triggering taxable events based on fair market value at receipt.

This payout represents a structural breakthrough: blockchain‑generated yield now flows seamlessly through regulated market infrastructure into brokerage accounts, without the friction of self‑custody or on‑chain management. For Solana, it reinforces the “Everything App Chain” narrative by showcasing how its proof‑of‑stake design generates economic value that ETF issuers can repackage for mainstream audiences.

Competition: Cash vs. Reinvestment Models

U.S. Solana ETFs have split into two camps on staking rewards. 21Shares’ TSOL opts for direct cash distributions, allowing investors to receive periodic income while the fund continues staking its underlying SOL. Competitors like Bitwise (BSOL) pursue automatic reinvestment, compounding yields into the net asset value (NAV) and deferring taxes until shares are sold.

Fee competition is equally fierce. VanEck’s product launched with a 0.30% sponsor fee (temporarily waived), Grayscale has run promotional staking fee reductions, and Franklin Templeton waived certain staking fees on its Solana ETF for a limited period. REX Shares and Osprey’s staking ETF entered with a higher expense ratio but pioneered the regulatory path. Collectively, U.S. Solana ETFs now manage about $1.19 billion in assets—roughly 1.38% of Solana’s total market cap—demonstrating resilient demand even amid recent price volatility. Solanafloor

Solana ETF Flows: Resilient Amid Market Stress

Flow data illustrates why staking matters. During the week of January 12–16, 2026, Solana spot ETFs saw a net inflow of $46.88 million, led by Bitwise’s BSOL with $32.23 million and a cumulative historical inflow of $680 million. Even in tougher conditions—such as February 5 when Bitcoin ETFs posted $434 million in outflows and Ethereum funds $80.8 million—Solana ETFs recorded $2.82 million in net inflows as SOL traded near $79–$80.

SolanaFloor’s ETF tracker shows daily inflows remaining positive into mid‑February, with Bitwise and others absorbing selling pressure while broader crypto markets reprice. This selective demand reflects institutions rotating toward yield‑bearing assets during risk‑off periods, a pattern that could accelerate as more ETFs launch staking distributions.

The Bigger Picture: Solana’s Institutional Push

Staking as a Competitive Moat

Solana’s 7% gross staking yield—net of inflation and fees around 5.75%—creates a compelling case against zero‑yield Bitcoin ETFs and lower‑yielding Ethereum products. Blockeden’s analysis estimates that a conservative institution allocating 2% of AUM to Solana staking ETFs could generate 140 basis points of portfolio‑level return from yield alone, before any price appreciation. Over five years, compounding turns this into meaningful outperformance versus traditional fixed income or non‑staking crypto exposure.

Operational risks remain: staked SOL faces lock‑up periods, validator slashing potential and custody dependencies. TSOL is not registered under the 1940 Investment Company Act, so it lacks some mutual fund protections. Still, the yield profile and distribution mechanics make Solana ETFs uniquely attractive for yield‑hungry portfolios.

2026 Outlook: From Yield to Ecosystem Dominance

21Shares’ own research forecasts SOL reaching $197 in 2026 under bullish conditions driven by ETF flows, while downside risks around $95 loom if macro pressures persist. The staking payout aligns with Solana’s broader institutional strategy: integrations with J.P. Morgan, payment‑for‑order‑flow pilots, liquid staking tokens (LSTs) and RWA tokenization. As ETF AUM grows, staking rewards could become a flywheel: more assets staked means higher network security, better validator economics, and more yield to distribute.

Tax treatment adds nuance. The IRS classifies staking rewards as ordinary income at receipt, so cash payouts like TSOL’s create immediate liability, whereas reinvestment models defer it. Sophisticated investors will weigh this alongside yield, fees and liquidity when sizing positions.

Risks and Considerations for Investors

Beyond taxes and operations, Solana ETFs face network risks: congestion during high activity, validator centralization debates, and competition from Ethereum L2s or other high‑throughput chains. Recent market stress saw SOL test $67–$68 supports with declining futures open interest and negative funding, showing that ETF inflows do not immunize price against broader sell‑offs.

Regulatory evolution remains key. While staking distributions are now approved, ongoing SEC scrutiny of crypto ETFs could affect future launches or fee structures. For retail investors, the appeal is clear: passive staking income without technical hurdles. For institutions, it is a portfolio diversifier blending crypto upside with fixed‑income stability.

The Road Ahead: Quarterly Payouts and Growing Competition

Additional quarterly distributions are scheduled throughout 2026, positioning TSOL as a recurring income vehicle rather than a one‑off event. As more issuers enter—VanEck, Grayscale, Franklin Templeton—the yield race will intensify, potentially driving down fees and improving net returns for investors.

Ledger Academy’s ETF guide notes that Solana’s staking model gives it an edge in the “yield ETF” subcategory, attracting capital rotations from Bitcoin and Ethereum during sideways or bearish markets. If SOL holds key supports and ETF AUM scales toward the multi‑billion mark projected by some analysts, staking rewards could become a defining feature of institutional crypto allocation.

21Shares’ February 17 payout is more than a dividend—it is proof that blockchain economics can flow into TradFi plumbing. For Solana, it cements staking as a moat, yield as a magnet, and ETFs as the bridge to mainstream adoption. The question now is whether this yield revolution sustains through volatility and scales with the network.