- REX-Osprey will launch the first U.S. staking ETFs for Solana and Ethereum assets.
- The SEC raised no further objections, clearing the path for these staking ETFs to debut soon.
- Both funds will distribute staking rewards to holders, unlike existing spot crypto ETFs.
REX Shares and Osprey Funds are moving closer to launching the first U.S. exchange-traded funds (ETFs) that offer both exposure to Solana (SOL) and Ethereum (ETH) prices and deliver staking rewards to investors.
The Securities and Exchange Commission (SEC) confirmed it has no further comments on the funds’ filings, signaling the end of a months-long review and opening the path for these innovative investment products to reach the market.
SEC Clears Path for Solana and Ethereum Staking ETFs
The SEC earlier noted major concerns about REX-Osprey’s proposed ETFs, especially regarding their legal structure and compliance with investment company standards. In filings submitted in May, the regulator sought clarification regarding whether ETFs set up as C-corporations were compliant with the Investment Company Act and Rule 6c-11. These rules govern the listing and operation of ETFs on U.S. exchanges.
After a period of back-and-forth correspondence, the SEC has now signaled that all its questions have been addressed. Bloomberg ETF analyst Eric Balchunas confirmed the development, noting on X (formerly Twitter), “they are good to launch it looks like.”
This decision sets the stage for the launch of the SOL staking ETF, promoted by REX-Osprey Shares as “coming soon.” Both the Solana and Ethereum staking ETFs will list on the Cboe BZX exchange under the tickers SSK and ESK, respectively.
The ETFs will expose ETH and SOL to price fluctuations while also distributing staking rewards to investors. According to REX-Osprey filings, the funds plan to stake part of their holdings, earning extra yield that will be passed on as dividends to shareholders.
Also Read: REX-Osprey files for a MOVE ETF as Movement Network launches a $250M mainnet beta
Unique Legal Structure Sets REX-Osprey ETFs Apart
The approach used by REX Shares and Osprey Funds is notable in the ETF world. By choosing to operate as C-corporations, the funds avoid many regulatory hurdles that have delayed the approval of spot crypto ETFs. This setup allows staking yields to be taxed within the fund before distribution, which is different from most traditional ETF structures.
While spot Ethereum ETFs have been trading in the U.S. for nearly a year, staking ETFs remain absent from the market. Only futures-based Solana ETFs have received approval so far. The upcoming launch of these staking ETFs may accelerate institutional adoption of altcoin investment products, as more firms like Invesco and Galaxy show interest in launching similar products.
The management fees for both funds are 0.75%. However, because of the income tax accrual within the fund, the actual costs to shareholders may be higher. The launch of these funds could represent a major turning point for the growth of crypto-related investment vehicles in the United States.
Also Read: Ethereum Nears Key ETF Decision, How 35M ETH Staked Could Impact the Market
