- First Ethereum and Solana staking ETFs in the U.S. could launch in the coming weeks.
- REX Shares filed with a rare C-corporation structure to introduce these funds.
- These ETFs will offer spot exposure to Ether and Solana through overseas subsidiaries.
- Staking is set to cover at least 50% of fund assets according to recent statements.
- The SEC has delayed similar applications but the new structure could allow faster approval.
REX Shares has filed to launch the first exchange-traded funds (ETFs) in the United States that feature staking for Ethereum and Solana, according to recent analyst reports. The ETFs could begin trading within the next few weeks, pending regulatory processes. These products aim to address industry calls for staking options in crypto ETFs following the July 2024 debut of spot Ether funds.
ETF analyst James Seyffart highlighted that REX Shares structured their proposed ETFs as C-corporations, an unusual format for this type of fund. In a filing, the company stated that the funds will be taxed as C-corporations and will reflect current or deferred tax liabilities in their net asset value. This structure is intended to create a regulatory solution that allows for staking features, which were previously delayed by the U.S. Securities and Exchange Commission (SEC).
The REX Shares ETFs are designed as “40-act funds,” meaning they follow the regulatory regimen of the Investment Company Act of 1940, and will not use the usual 19b-4 process required for traditional ETF approval. “These ETFs are structured as c-corps. Which is very rare in the ETF world,” Seyffart said in a statement on X. He also stated that the funds will gain spot exposure to Ether and Solana through Cayman Islands subsidiaries.
ETF Store President Nate Geraci described the approach as a regulatory end-around and suggested “two crypto ETF launches are imminent,” with the products staking at least 50% of their holdings. The SEC recently postponed a decision on Bitwise’s request to add staking to its own Ether ETF, with Seyffart noting that the agency often takes the full time to respond to such filings.
Industry figures, including BlackRock’s head of digital assets Robbie Mitchnick, have called staking a missing piece in existing spot Ether products. Mitchnick noted that while BlackRock’s ETF launch was a “tremendous success,” its lack of staking features made it “less perfect.”
Staking allows investors to earn rewards by participating in blockchain validation processes. The new ETF structure from REX Shares aims to allow U.S. investors to access these benefits through regulated financial products, depending on final regulatory approval.
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