The first Ethereum and Solana staking exchange-traded funds (ETFs) could debut in the United States within a matter of weeks, following a recent filing by ETF provider REX Shares that used “regulatory workarounds,” according to ETF analysts.
The staking component has been highly anticipated for spot Ether (ETH) ETFs since their launch in July 2024, with some industry executives arguing the product feels incomplete without it.
REX Shares filings have a “unique structure”
“These ETFs are structured as c-corps. Which is very rare in the ETF world,” ETF analyst James Seyffart said of the REX Shares filing in a May 30 X post.
“Don’t know the launch date, but it could be within the next few weeks.”
REX Shares explained in the filing that the fund “is classified as a C-corporation for tax purposes, and, as such, will incur current and deferred tax expenses. Such current or deferred tax liabilities, if any, will be reflected in the Fund’s Net Asset Value.”
Seyffart explained that REX Shares proposed Solana (SOL) and Ether staking ETFs “are 40-act funds with a unique structure and do not go through the 19b-4 process.”
It comes after the SEC delayed its decision on Bitwise’s application to add staking to its Ether ETF on May 21. At the time, Seyffart said the delay was expected because the SEC “typically takes the full time to respond to a 19b-4 filing.”
The two crypto ETF launches “are imminent”
Seyffart said the funds will gain spot exposure to Ether and Solana “via Cayman subsidiaries.”
“All of this, assuming they launch in the near future, is a bunch of clever legal and regulatory workarounds to get these products to market,” Seyffart said.
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“There are pros and cons to the structure, but it looks like one pro is that this was one way to get some level of signoff from the SEC,” Seyffart said.
Echoing a similar sentiment, ETF Store President Nate Geraci said Rex Shares took “the regulatory end-around.”
“Looks like two crypto ETF launches are imminent,” Geraci said, explaining that both ETFs are seeking to stake “at least 50%” of Solana and Ether.
It has been a long-awaited feature by many in the industry. On March 20, BlackRock’s head of digital assets, Robbie Mitchnick, described the firm’s Ether ETF as a “tremendous success” but acknowledged a key limitation. Mitchnick said that the ETF is “less perfect” without staking.
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