REX Shares Files for Ethereum and Solana ETFs

TLDR

• REX Shares files for first U.S. Ethereum and Solana ETFs.
• ETFs feature staking, offering native yields to investors.
• Management fees set at 0.75%, with first-year expenses at 1.28%.

REX Shares has officially filed with the U.S. Securities and Exchange Commission (SEC) to introduce the first U.S.-listed Ethereum (ETH) and Solana (SOL) exchange-traded funds (ETFs) that incorporate staking features. This marks a significant step in the realm of regulated crypto investment products, particularly by offering native staking yields for investors, a feature eagerly anticipated by the market.

REX Shares, an established name in the ETF industry, is the initiator of these new products. The company’s leadership has not made public statements, but their actions are documented in the filings. The company is known for launching ETFs designed to provide exposure to volatility and thematic trends.

Unique ETF Structure and Regulatory Approach

The proposed ETFs are structured as “C-corporations” for tax purposes. They will hold Ethereum and Solana exposure through wholly owned subsidiaries based in Cayman Islands. This approach allows the funds to stake and earn native rewards. The structure bypasses the standard 19b-4 SEC approval process by filing as “40-Act funds” under the Investment Company Act of 1940.

Management fees for these ETFs are set at 0.75%, with the first-year expenses estimated to reach 1.28% of assets, including U.S. income tax accrual. The launch hinges on clearing processes such as Depository Trust Company (DTC) eligibility and Nasdaq symbol reservation.

Insights from Industry Analysts

Industry analyst James Seyffart from Bloomberg has shared his expert views on the matter. He remarked on the rarity of C-corporation structures in the ETF world and the clever legal workarounds employed for these products’ entry into the market.

Seyffart noted that these ETFs could potentially launch within a few weeks, given the agile regulatory navigation demonstrated in the filings. His comments reflect a broader market curiosity regarding the impact of these products on the exchange-traded fund landscape.

Potential Market Impacts and Assets Affected

Primary assets involved in this ETF launch are Ethereum (ETH) and Solana (SOL). These cryptocurrencies will be directly affected as they serve as the underlying assets. No mention of Bitcoin or other altcoins in the filings suggests a focused strategy.

Historically, the introduction of ETFs for cryptos such as Bitcoin and Ether has led to significant increase in liquidity and institutional allocations. These staking-enabled ETFs are unique, further differentiating this initiative from prior ETF launches.

Broader Industry and Regulatory Context

The SEC has recently clarified that certain staking services on Proof-of-Stake protocols are not considered securities, paving the way for such ETF structures to move forward. Although there are no statements from SEC leadership, the expedited pathway suggests a new openness to crypto-based yield products.

While no direct impacts on BTC or unrelated altcoins are reported, broader shifts may eventually influence flagship protocols and liquidity providers within the Ethereum and Solana contexts. Institutional interest continues to grow as more compliant staking products enter the U.S. market.