REX Shares and Osprey Funds, two prominent financial entities, are poised to deliver the first two exchange-traded funds (ETFs) in the U.S. that combine crypto asset price tracking and staking yield provision. This development comes after the Securities and Exchange Commission (SEC) confirmed that it had no further comments or issues with the proposed funds.
The companies filed an application with the SEC back in May, outlining their plans to establish C-corporation ETFs that would invest in Ethereum and Solana, while also staking a portion of these assets for additional yield generation. The SEC initially raised concerns about the legality of these funds, delaying their approval.
However, a recent filing indicates that all outstanding issues have been addressed, clearing the way for the ETFs’ imminent launch. Bloomberg’s senior ETF analyst, Eric Balchunas, reacted with surprise to the news, stating, “They are good to launch it looks like. Wow.”
REX Shares has already started promoting its Solana staking ETF, which will be one of the only funds to track the price of SOL. The company posted an update on Friday, hinting that their fund would be “coming soon.” While no specific mention was made of the Ethereum staking ETF, it’s believed that the registration statement covers both funds.
The funds, trading under the tickers ESK and SSK for the Ethereum and Solana staking ETFs respectively, will be listed by Cboe BZX. In a unique approach, these ETFs will be taxable C-corps, meaning staking distributions to holders will be treated as dividend income. The management fees stand at 0.75%, but income-tax accrual may push the overall fees higher.
The crypto industry continues to see a growing interest in Solana ETFs, with several firms, including Invesco and Galaxy, entering the race recently. Balchunas predicted that these funds could receive approval within the next two to four months.
