Analysts predict that the United States could soon see the launch of unique staking exchange-traded funds (ETFs) for Ethereum and Solana. This development follows a recent filing by ETF provider REX Shares, which analysts believe employs “regulatory workarounds”.
Since their inception in July 2024, spot Ether ETFs have been eagerly awaiting the inclusion of a staking component. Many industry experts believe that without it, the product seems incomplete. The filings by REX Shares offer a “unique structure”.
James Seyffart, an ETF analyst, highlighted the distinctiveness of the REX Shares filing, stating that the ETFs are structured as c-corps, a rarity in the ETF world. While the launch date remains undisclosed, Seyffart suggests that it could occur within the forthcoming weeks.
In the filing, REX Shares clarified that the fund, as a C-corporation, will incur both current and deferred tax expenses. These liabilities, if any, will be reflected in the Fund’s Net Asset Value.
REX Shares’ proposed Solana and Ether staking ETFs, Seyffart explains, are 40-act funds with a unique structure that bypass the 19b-4 process. This comes after the Securities and Exchange Commission (SEC) postponed its decision on Bitwise’s proposal to add staking to its Ether ETF.
Seyffart predicts that the two crypto ETFs could be launched soon, with the funds gaining spot exposure to Ether and Solana through Cayman subsidiaries. He believes the imminent launch would demonstrate clever regulatory and legal maneuvering.
Despite the structure having its pros and cons, one significant advantage, according to Seyffart, is that it could secure some level of approval from the SEC. Nate Geraci, President of ETF Store, concurred, stating that REX Shares took “the regulatory end-around.”
Geraci also suggested that two crypto ETFs’ launch is imminent, with both ETFs intending to stake at least 50% of Solana and Ether. The introduction of staking has been a much-anticipated feature in the industry.
