The anticipated launch of the first Ethereum and Solana staking exchange-traded funds (ETFs) is now within reach, thanks to a new filing by REX Shares. Analysts suggest that these ETFs could debut in just a few weeks, addressing a longstanding demand from investors who see staking as a critical component.
REX Shares is utilizing what is described as a unique structure; their ETFs are classified as C-corporations for tax purposes. James Seyffart, an ETF analyst, highlighted that this classification, while rare in the ETF market, could position these funds favorably. "Don’t know the launch date, but it could be within the next few weeks," Seyffart noted.
The significance of these ETFs stems from the belief that the staking feature enhances the appeal of spot Ether ETFs, which launched in July 2024. Seyffart explained that REX Shares' proposal for Solana and Ether ETFs will enable exposure to both cryptocurrencies through Cayman subsidiaries without undergoing the usual 19b-4 regulatory process.
Their unique approach aims to sidestep regulatory delays. The SEC recently postponed its decision on Bitwise’s application to add staking to its Ether ETF, a situation Seyffart indicated was expected. "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," he added.
The launch of these ETFs could mark a critical milestone in the evolving crypto market. Experts estimate that these ETFs will seek to stake at least 50% of both Solana and Ethereum, directly responding to industry demand for more comprehensive cryptocurrency investment products.
REX Shares is utilizing what is described as a unique structure; their ETFs are classified as C-corporations for tax purposes. James Seyffart, an ETF analyst, highlighted that this classification, while rare in the ETF market, could position these funds favorably. "Don’t know the launch date, but it could be within the next few weeks," Seyffart noted.
The significance of these ETFs stems from the belief that the staking feature enhances the appeal of spot Ether ETFs, which launched in July 2024. Seyffart explained that REX Shares' proposal for Solana and Ether ETFs will enable exposure to both cryptocurrencies through Cayman subsidiaries without undergoing the usual 19b-4 regulatory process.
Their unique approach aims to sidestep regulatory delays. The SEC recently postponed its decision on Bitwise’s application to add staking to its Ether ETF, a situation Seyffart indicated was expected. "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," he added.
The launch of these ETFs could mark a critical milestone in the evolving crypto market. Experts estimate that these ETFs will seek to stake at least 50% of both Solana and Ethereum, directly responding to industry demand for more comprehensive cryptocurrency investment products.
