REX Shares, in collaboration with Osprey Funds, has filed a prospectus with the U.S. Securities and Exchange Commission (SEC) to launch two innovative exchange-traded funds (ETFs) focused on staking Ethereum (ETH) and Solana (SOL). The move marks a significant development in the U.S. cryptocurrency investment landscape, capitalizing on a shifting regulatory environment and growing investor interest in digital assets.
The proposed REX-Osprey ETH + Staking ETF and REX-Osprey SOL + Staking ETF aim to provide investors with direct exposure to Ethereum and Solana, while also staking at least 50% of the underlying assets to earn native rewards. According to the May 30 filing, each fund will operate through a wholly owned Cayman Islands subsidiary that holds and stakes spot ETH and SOL, a structure designed to navigate regulatory complexities.
Bloomberg Senior ETF Analyst James Seyffart described the filing as a “regulatory end-around,” noting that the ETFs are structured as 40-Act funds taxed as C-corporations, bypassing the traditional 19b-4 review process. This unique approach, coupled with the SEC’s recent confirmation that Proof-of-Stake protocol staking does not constitute securities, could expedite the launch, with analysts predicting the ETFs may go live within weeks.
The funds are expected to incur tax expenses reflected in their Net Asset Value, showcasing REX Shares’ innovative strategy in addressing stringent regulatory requirements. ETF Store President Nate Geraci highlighted the imminent launch, stating,
“Looks like two crypto ETF launches are imminent,” emphasizing the funds’ potential to stake significant allocations of Ether and Solana.
Nate Geraci
This filing comes amid a favorable shift in U.S. crypto regulation, particularly following the SEC’s softened stance on staking and the broader crypto market’s growth. The ETFs are poised to attract investors seeking passive income through staking rewards while gaining exposure to two of the largest cryptocurrencies by market capitalization.
The prospectus also mentions the inclusion of liquid staking tokens, with a nod to platforms like Jito for Solana, potentially enhancing liquidity and flexibility for investors. The launch of these ETFs could reshape market dynamics, offering a regulated pathway for institutional and retail investors to engage with Ethereum and Solana’s staking ecosystems.
