REX Shares has filed to launch Ethereum and Solana ETFs that include crypto staking, signaling a bold move in the evolving digital asset landscape. The filing, submitted to the U.S. Securities and Exchange Commission (SEC) on May 30, was marked “immediately effective,” hinting at a potential launch in the near future.
REX Aims to Launch Staking-Enabled ETFs
According to the filing, each ETF will directly hold Ethereum or Solana and stake a portion of the assets to earn on-chain rewards. At least 80% of each fund’s assets will be invested in the respective cryptocurrency, with 50% of that amount staked. Investors are expected to receive staking rewards as dividend income.
This approach could make REX the first to offer a spot Solana ETF, since current products only track Solana futures.
A New Legal Strategy to Speed Up Approval
REX used the Investment Company Act of 1940 (commonly known as the ’40 Act) to speed up the process. This strategic move helped bypass the slower approval route of the Securities Act of 1933.
Additionally, these ETFs will operate as C-corporations instead of traditional regulated investment companies (RICs). This less common structure allows for certain tax advantages, especially when dealing with staking income.
Experts Weigh In
Bloomberg ETF analysts have taken notice. Eric Balchunas highlighted the significance of this move and called it a key moment for the future of staking-based ETFs.
James Seyffart, also from Bloomberg, called the strategy a “clever legal workaround.” He noted that C-corp ETFs are rare, mostly used for master limited partnerships (MLPs). While this structure enables SEC approval, he added that it may not be the long-term solution.
SEC Clarifies Staking Regulations
The timing of the filing is notable. Just days earlier, the SEC issued fresh guidance on staking. It clarified that not all proof-of-stake activities count as securities under federal law. Features like early withdrawals or bundled services also don’t automatically change their regulatory status.
SEC Commissioner Hester Peirce confirmed this view, saying that some staking models fall outside the scope of securities law.
What This Means for Crypto ETFs
Industry leaders believe this regulatory clarity could trigger a wave of new ETF products. According to Nate Geraci, president of The ETF Store, investors may soon gain direct access to yield-generating crypto assets in a familiar investment format.
If successful, REX’s Ethereum and Solana ETFs could reshape the market by introducing staking rewards into mainstream portfolios.
