REX-Osprey Set to Launch Solana and Ethereum Staking ETFs After SEC Completes Review
Quick Summary
• SEC announces no additional comments on REX-Osprey’s plan to launch two ETFs tracking Ether and Solana prices while distributing staking rewards to investors, paving the way for fund launches.
• REX announces SOL staking ETF will “launch soon” via X social media post, though no specific mention of ETH staking ETF yet.
• Breakthrough in US ETF market – while Ethereum spot ETFs have traded in the US for nearly a year, no staking ETFs have launched yet, with only Solana futures-based ETFs currently available.
First US Staking ETFs Set to Launch
The first two exchange-traded funds (ETFs) in the United States capable of tracking crypto asset prices and generating staking returns for investors are preparing to launch. This comes after the Securities and Exchange Commission (SEC) notified fund issuers that they have no additional comments.
REX Shares and Osprey Funds filed with the SEC in May to create ETFs that would invest in Ethereum (ETH) and Solana (SOL) while staking a portion of assets to generate additional returns. However, their filings were initially flagged by the SEC, which indicated that agency staff still had unanswered questions about the funds’ legal eligibility for issuance.
Latest Developments
According to filings submitted late in the week, it appears these issues have been resolved. Eric Balchunas, Bloomberg’s senior ETF analyst, shared on X: “Looks like they’re ready to launch.”
REX Shares promoted the Solana staking ETF fund in an X post, stating the fund will “launch soon.” This ETF will join Volatility Shares’ Solana futures ETF as the only funds tracking SOL price. However, REX Shares has not yet mentioned the ETH staking ETF.
ETF Fund Details
According to registration documents, both funds will trade under ticker symbols:
- ESK for ETH staking ETF
- SSK for SOL staking ETF
Both funds will be listed on the Cboe BZX exchange.
Market Competition and Operating Mechanism
Currently, several companies are competing to launch Solana spot ETFs, with Invesco and Galaxy joining the race last week. According to Balchunas, these funds could be approved within two to four months. However, REX-Osprey’s approach has bypassed the traditional approval process through a clever legal solution. Unlike most ETFs, these funds are structured as taxable C-corporations (C-corps). Due to this structure, staking distributions to investors will be taxed within the fund before being distributed to investors as dividends. The base management fee is 0.75% for both funds, though income tax accumulation will increase total costs in most cases.
