SEC Scrutinizes REX and Osprey’s Ethereum, Solana ETFs

• Lyla Velez
• June 1, 2025

REX Shares and Osprey Funds face SEC scrutiny over their proposed Ethereum and Solana staking ETFs, which are structured as C-corporations with Cayman Islands subsidiaries.

The investigation holds importance as it challenges the regulatory framework, putting focus on how staking functions within ETFs. This may affect future ETF structures and market strategies.

“These ETFs are structured as c-corps. Which is very rare in the ETF world… Don’t know the launch date, but it could be within the next few weeks.” – James Seyffart, ETF Analyst, Bloomberg

REX Shares and Osprey Fund plan to launch ETFs focused on Ethereum and Solana staking, avoiding traditional regulatory pathways. Using a unique structure, they’ve bypassed typical approval processes, which raises questions. The SEC’s attention is drawn to the application of these innovative approaches in regulated markets. If these ETFs proceed, it could set precedents impacting regulatory views on similar financial products in the future.

The ETFs, designed to provide yield exposure through indirect staking methods, have prompted scrutiny. This highlights both the innovation in financial instruments and regulatory oversight. Financial markets and institutional investors closely watch the reactions. Changing regulatory perspectives could influence not only REX/Osprey but also future ETF designs seeking to incorporate staking benefits. CEO opinions and further cryptocurrency strategies are anticipated to reshape the industry, even more so if these ETFs proceed.