New ETH and SOL Staking ETFs Could Launch in Weeks as SEC Workaround Emerges
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REX Shares has filed for ETH and SOL staking ETFs using a C-Corp and Cayman structure to bypass traditional SEC processes. Analysts say the ETFs could launch in weeks, offering staking rewards and setting a new precedent in crypto finance. The U.S. is inching closer to launching its first staking-focused crypto ETFs, with REX Shares leading the charge. The firm’s filings for Ethereum (ETH) and Solana (SOL) staking ETFs have caught analysts’ attention, not just for the assets involved, but for the regulatory maneuvers used to fast-track their approval. “These are 40-Act funds with a unique structure and do not go through the 19b-4 process,” said Bloomberg ETF analyst James Seyffart on X. He described the approach as “a bunch of clever legal and regulatory workarounds.” These ETFs are structured as c-corps. Which is very rare in the ETF world. Only really used for some MLP ETFs that I can think of off top of my head. There a pros and cons to the structure but looks like one pro is that this was one way to get some level of signoff from the SEC pic.twitter.com/wt95UrqYtx — James Seyffart (@JSeyff) May 30, 2025 REX Shares structured both funds as C-corporations—a rare designation in the ETF world. This allows the products to incur and disclose tax liabilities while offering staking rewards. More notably, these ETFs will use Cayman-based subsidiaries to gain spot exposure to ETH and SOL. According to Seyffart, this bypasses the traditional 19b-4 route that has stalled other ETF applications, including Bitwise’s recent attempt to add staking to its Ether ETF. Nate Geraci, president of The ETF Store, called the strategy a “regulatory end-around.” In his words, “It looks like two crypto ETF launches are imminent.” REX Shares w/ the regulatory end-around… Looks like two crypto ETF launches are…
Filed under: News - @ May 31, 2025 2:22 pm