REX Shares and Osprey Funds have secured regulatory approval from the U.S. Securities and Exchange Commission (SEC) for the first Solana (SOL) and Ethereum (ETH) staking exchange-traded funds (ETFs). The SEC's "no further comments" designation on the filings marks a pivotal moment for crypto-based investment products, enabling investors to earn staking rewards through traditional brokerage accounts.
Key Features of the REX-Osprey™ SOL + Staking ETF
👉 Discover how staking ETFs work
- Dual exposure: Tracks Solana's price performance while generating yield via on-chain staking.
- Staking rewards: Investors earn passive income typically reserved for direct crypto holders.
- Regulated access: Provides institutional and retail investors with a compliant pathway to participate in proof-of-stake networks.
Regulatory Journey and Market Impact
After months of negotiations, the SEC resolved initial concerns about the ETFs' unique staking mechanisms, which diverged from traditional ETF structures. REX and Osprey addressed compliance questions through revised filings, paving the way for approval.
Bloomberg ETF analyst Eric Balchunas confirmed that launch preparations are underway, with REX Shares teasing an imminent release via social media. This approval signals broader institutional interest in staking-based crypto products, with firms like Canary Capital also pursuing similar ETFs.
Why This Matters
- Mainstream adoption: Bridges the gap between crypto staking and traditional finance.
- Diversification: Offers exposure to SOL and ETH without requiring direct asset ownership.
- Yield potential: Enhances portfolios with staking rewards, a first for U.S. ETFs.
👉 Explore the future of crypto ETFs
FAQs
Q: How do staking ETFs differ from holding crypto directly?
A: ETFs provide staking rewards without requiring investors to manage private keys or technical processes.
Q: When will the REX-Osprey ETFs launch?
A: While no exact date is confirmed, REX Shares' marketing campaigns suggest a near-term rollout.
Q: Are staking rewards taxable?
A: Yes, staking rewards are typically treated as taxable income in the U.S.
Q: Can these ETFs hold other cryptocurrencies?
A: Currently, the approved ETFs focus exclusively on SOL and ETH.
Q: What risks are associated with staking ETFs?
A: Market volatility, slashing penalties (for validator misbehavior), and regulatory changes could impact returns.
Conclusion
The SEC's approval of REX-Osprey’s staking ETFs marks a transformative step for crypto investments, combining asset appreciation with yield generation. As institutional demand grows, these products may accelerate crypto’s integration into conventional financial portfolios.