REX Shares Seeks Approval for Staking ETFs

REX Shares Seeks Approval for Staking ETFs

REX Shares has filed with the SEC to launch US-first staking ETFs for Ethereum and Solana.

These staking ETFs could transform US crypto investing by offering regulated access to staking rewards.

REX Shares, an asset management firm, filed with the SEC to introduce exchange-traded funds for Ethereum and Solana staking. The move introduces potentially the first US staking ETFs. These funds are structured as C-corporations, a rare choice within the ETF industry. James Seyffart, a Bloomberg ETF analyst, said:

“These ETFs are structured as c-corps. Which is very rare in the ETF world,” adding that the launch could happen “within the next few weeks.”

REX Advisers will handle the funds and charge a 0.75% management fee.

The SEC’s recent confirmation that staking on Proof-of-Stake protocols is not a security could positively impact regulatory perceptions. Market listings are expected on Nasdaq, with no official launch date yet. However, trading might begin soon if initial shares clear regulatory hurdles. Ethereum and Solana are pivotal in attracting institutional investment, as these funds offer a familiar investment method most institutions utilize.

Financial projections indicate a first-year expense of 1.28% due to the C-corp tax structure. Each ETF will engage in spot purchases and staking through a Cayman Islands subsidiary, potentially influencing broader market structures.

Additionally, these ETFs aim to fill a perceived gap as industry participants have long awaited staking components for Ethereum ETFs. Analysts, including James Seyffart, praise REX Shares’ regulatory workarounds, which could set a precedent in the ETF sector. With Ethereum and Solana staking on offer, these products might encourage further investment from traditional finance, providing a regulated channel for earning protocol rewards.