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REX Shares has filed prospectuses for Ethereum and Solana staking ETFs, signaling a potential imminent launch. Analysts suggest these ETFs, structured as C-corporations, employ unique regulatory workarounds to offer investors regulated exposure to crypto staking yields, a feature long sought after in the digital asset space.
REX Shares Paves Way for Staking ETFs
REX Shares has filed effective prospectuses for Solana (SOL) and Ethereum (ETH) staking Exchange Traded Funds (ETFs) in the United States. This move is seen as a significant step towards bringing regulated crypto staking products to market, with analysts predicting a launch within weeks.
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These ETFs are structured as C-corporations, a rare setup in the ETF industry, allowing them to bypass conventional 19b-4 filings.
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The funds aim to stake at least 50% of their holdings in Ethereum and Solana, addressing investor demand for regulated staking yield products.
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REX Shares plans to gain spot exposure to Ethereum and Solana through Cayman-based subsidiaries, utilizing a "clever legal and regulatory workaround."
Unique Regulatory Approach
ETF analysts James Seyffart and Nate Geraci have highlighted the innovative regulatory strategy employed by REX Shares. By registering as C-corporations and operating as 40-Act funds, REX Shares has found an alternative route to market, circumventing some of the typical regulatory hurdles faced by crypto ETFs.
This approach comes after the U.S. SEC clarified that staking via Proof-of-Stake protocols is not classified as a security, providing a clearer path for staking-based ETF structures. The timing is particularly notable given ongoing delays in other crypto ETF applications, including Grayscale's attempts to reclassify its spot ETFs.
Meeting Investor Demand for Staking Yield
The introduction of staking capabilities in these new ETFs is a highly anticipated development. Industry executives, including BlackRock's Robbie Mitchnick, have previously noted that existing Ether ETFs felt "less perfect" without staking, which is crucial for mirroring crypto's true yield potential. The REX Shares ETFs aim to fulfill this demand by offering a regulated vehicle for investors to earn staking rewards.
This development could set a new precedent for crypto ETF strategies in the U.S. market, potentially influencing future filings and regulatory approaches for digital asset products.
Sources
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REX Shares Files Effective Prospectus For Solana, Ethereum Staking ETFs, TronWeekly.
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ETH, SOL 'very rare' staking ETFs may launch imminently — Analysts — TradingView News, TradingView.
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ETH, SOL 'very rare' staking ETFs may launch imminently — Analysts, Cointelegraph.
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