Ethereum and Solana Staking ETFs Set to Launch After SEC Approval
Major Developments in Staked ethereum and Solana ETFs for U.S. Investors
Exciting Prospects for Upcoming Staking ETFs
Investment firms REX Financial and Osprey Funds are on the verge of launching the first staked ethereum (ETH) and Solana (SOL) exchange-traded funds (ETFs) for American investors, following a significant update in their regulatory journey.
According to Eric Balchunas, a senior ETF analyst at Bloomberg, the U.S. Securities and Exchange Commission (SEC) indicated in a statement on June 27 that it had “no further comments” regarding the funds’ filings. This suggests that the path is clear for an imminent launch.
Regulatory Green Light for Innovative ETF Structures
Rex Shares and Osprey Funds submitted their proposals to the SEC in May, aiming to create ETFs that would not only hold but also stake ETH and SOL, allowing shareholders to benefit from staking rewards. Initially, the SEC raised concerns about the funds’ eligibility under existing regulations due to their unique C-corporation structure. However, recent filings suggest that these issues have been satisfactorily addressed.
Balchunas remarked on social media, “The SEC has no further comments, indicating they are ready to proceed with the launch. Incredible!”
Both REX and Osprey have expressed their readiness to introduce these products, featuring a “Coming Soon” campaign on their website. The ETFs will be listed on Cboe BZX, trading under the tickers ESK for the ethereum staking ETF and SSK for the Solana staking ETF.
SEC’s Acceptance of Innovative ETF Framework
Nate Geraci, president of ETF Store, noted that the SEC seems to be receptive to the innovative C-corporation structure proposed by REX Shares, which previously raised concerns regarding compliance with the 6C-11 rule, commonly known as the “ETF rule.” Geraci stated, “It appears they are comfortable moving forward with their creative structure. Here we go.”
This unique framework allows for staking distributions to be taxed within the fund before being distributed to shareholders as dividends. Bloomberg analyst James Seyffart highlighted that the approach taken by REX Shares and Osprey Funds is quite rare in the ETF landscape, as it circumvents the standard 19b-4 filing process typically used for staking proposals.
Currently, around seven asset management firms are competing to launch a spot Solana ETF in the U.S. Analysts at Bloomberg estimate a 95% chance that the SOL funds will receive regulatory approval by the end of 2025, given the positive interactions with the SEC.
This article provides a comprehensive overview of the anticipated launch of staked ethereum and Solana ETFs, highlighting the regulatory developments and innovative structures that may pave the way for these investment products in the U.S. market.
