REX and Osprey Move Closer to Launching First Ethereum and Solana Staking ETFs

Highlights:

• REX and Osprey aim to launch funds that include staking as part of their investment strategy.
• The new funds plan to stake over half of their assets and offer investors exposure to token rewards.
• Anchorage Digital will provide custody and staking services for the products.

REX Shares and Osprey Funds have submitted a filing to the U.S. Securities and Exchange Commission seeking approval to launch two new cryptocurrency funds focused on Ethereum and Solana. According to Form N-1A, each fund must hold at least 80% of its net assets in ETH or SOL. Additionally, both funds will stake a minimum of 50% of their holdings to generate token rewards for investors.

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BIG NEWS: @REXShares just filed an effective prospectus for Solana and Ethereum staking ETFs to list here in the US. Don’t know launch date but could be within the next few weeks. These are 40-act funds with a unique structure and do not go through the 19b-4 process pic.twitter.com/cqUCWlFAZW

— James Seyffart (@JSeyff) May 30, 2025

Anchorage Digital will provide custody and staking services for the products. The firm’s CEO, Nathan McCauley, confirmed that Anchorage will serve as the qualified custodian. He also noted that Anchorage is the only federally chartered bank permitted to offer staking services. McCauley said the launch of these products reflects the next step in giving investors access to crypto staking through regulated fund structures.

The funds do not follow the same path as previously approved spot ETFs. As a result, they are planned as C-corporations and will follow the tax rules set for corporations by the United States. Because of this setup, staking rewards can be considered dividends. Changes in tax amounts will have a direct influence on the net asset value of every fund.

Legal Structure Opens Door for Staking ETFs

The unique setup of these funds has drawn attention from ETF analysts. James Seyffart of Bloomberg Intelligence pointed out that the funds use Cayman Islands subsidiaries to gain exposure to ETH and SOL. He described this approach as a creative method to bring staking ETFs to market without following the typical 19b-4 process. Although not traditional, this structure could help secure faster approval from the SEC.

Seyffart emphasized that the funds are classified under the 1940 Act, which separates them from other spot crypto ETFs. ETF Store President Nate Geraci added that the application appears to use an alternative route to include staking in ETF offerings. He explained that both funds plan to stake at least half of their assets, aligning with growing interest in crypto income strategies.

REX Shares w/ the regulatory end-around…

Looks like two crypto ETF launches are imminent.

REX-Osprey ETH + Staking ETF and REX-Osprey SOL + Staking ETF.

'40 Act funds taxed as C-Corp (so double taxation).

Both ETFs seek to stake at least 50% of underlying crypto asset. https://t.co/4JyczUeSpG

— Nate Geraci (@NateGeraci) May 30, 2025

A growing number of asset managers are arguing for the need for staking in crypto ETFs. Robbie Mitchnick, lead of digital assets at BlackRock, mentioned that the current Ethereum ETF misses the intended full staking experience. A decision on whether Bitwise can add staking to its Ether ETF was recently delayed by the SEC. These delays have led other firms to explore different ways to bring staking products to market.

Launch Window and Tax Structure Under Scrutiny

According to REX Shares and Osprey Funds, the Ethereum fund will have a 1.28% yearly fee. The Solana fund will charge a fee of about 1.4%. Analysts foresee that both products might be released within the next few weeks, though a confirmed date has not been given yet. If the proposal is accepted, these funds would be the first in the U.S. to have staking as a central feature.

The SEC has not yet approved a spot Solana ETF, though several firms have pending applications. The listing of SOL futures on the CME has raised expectations for future approval. Analysts believe REX and Osprey’s structure may speed up the process. These filings could mark an early shift in how staking becomes part of mainstream investment funds.

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