The post SEC Challenges Ethereum and Solana ETFs Over Classification Concerns – Coincu appeared on BitcoinEthereumNews.com.

Key Points: SEC questions Ethereum and Solana ETFs’ classification; delays expected. Launch postponed pending regulatory resolution. Potential ripple effects on staking-focused tokens. The US Securities and Exchange Commission (SEC) raised concerns on May 31 about Ethereum and Solana staking ETFs by REX Shares and Osprey Funds. These concerns revolve around their compliance with federal securities law. Greg Collett, REX’s general counsel, confirmed steps are being taken to address these issues. REX Shares and Osprey Funds faced scrutiny from the SEC on their proposed staking ETFs for Ethereum and Solana, focusing on discrepancies in classification under the federal securities law. Greg Collett stated, “We think we can satisfy the SEC about the investment company’s issues, and we don’t plan to launch the fund until we do that.“ SEC Delays Ethereum, Solana ETF Launches Amid Legal Concerns This development may delay the launch of these ETFs, as the SEC questions whether they align with the Investment Company Act’s requirements. This regulatory intervention signals a potentially protracted review process for staking products attempting to enter the formal market. The crypto community’s response reflects skepticism about how this will impact regulatory stances on staking ETFs, underscored by discussions on social media platforms like Twitter. Analysts emphasize possible setbacks for similar financial innovations. Price Recovery and Historical ETF Approval Context Did you know? In previous years, the approval of spot Bitcoin ETFs had faced significant delays, yet their eventual market introduction shifted public perceptions and prompted notable inflows. According to CoinMarketCap, Ethereum’s current market status lists the price at $2,523.03 with a market cap of approximately “304.59 billion.” Despite recent volatility in trading volumes, the 30-day price increase stands at over 36%, marking a period of recovery. Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 00:22 UTC on June 1, 2025. Source: CoinMarketCap Coincu’s research team…

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Filed under: News - @ June 1, 2025 12:28 am