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Ethereum and Solana Staking ETFs Edge Closer to U.S. Market Debut

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Rex Shares has taken a significant step toward launching staking-based exchange-traded funds (ETFs) for Ethereum (ETH) and Solana (SOL) in the U.S., following the filing of an effective prospectus with the Securities and Exchange Commission (SEC).

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The two proposed funds—named the Rex-Osprey ETH + Staking ETF (ticker: ESK) and the Rex-Osprey SOL + Staking ETF (ticker: SSK)—are set to be listed on Nasdaq. Unlike traditional spot cryptocurrency ETFs, these products are structured under the Investment Company Act of 1940, commonly referred to as the 40-Act. This regulatory framework enables them to bypass the more complex 19b-4 approval process typically required for most digital asset-related funds.

Both ETFs aim to offer investors regulated exposure to their respective cryptocurrencies while staking a portion of the fund’s holdings to generate on-chain rewards. The Ethereum-focused fund is designed to stake at least half of its assets, while the Solana fund is expected to follow a similar strategy. Staking, a process that involves locking up digital assets to help secure blockchain networks, allows fund participants to earn yield.

To navigate regulatory constraints, the fund structure utilizes subsidiaries based in the Cayman Islands to hold the underlying crypto assets. Despite this setup, both ETFs will be taxed as C-corporations, diverging from the traditional pass-through tax treatment common in many ETF structures. This is largely due to their concentrated exposure to digital assets.

Source: Google image

Source: Google image

According to the prospectus, the Ethereum ETF carries an estimated annual expense ratio of 1.28%, while the Solana ETF is projected at 1.40%. These figures include a 0.75% management fee, alongside anticipated tax liabilities. The documents also highlight typical risks associated with digital assets, such as volatility, liquidity concerns, and regulatory uncertainty.

While the SEC’s declaration of the prospectus as effective is a major milestone, it does not guarantee immediate trading. Analysts following the development indicated that fund launches would depend on final operational readiness, with market entry potentially occurring in the near term.

This development arrives amid growing investor interest in crypto-linked financial products, particularly those offering yield-generating mechanisms like staking. If launched, Rex Shares’ staking ETFs could appeal to institutional and retail investors seeking indirect exposure to Ethereum and Solana without managing self-custody or complex technical requirements.

Like traditional ETFs, these products will trade on the open market, with creations and redemptions processed primarily in cash. Market makers and authorized participants will be instrumental in ensuring adequate liquidity.

Overall, the proposed Ethereum and Solana staking ETFs mark another step forward in integrating blockchain-based financial tools into regulated U.S. markets, expanding the range of options available to crypto-curious investors.

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