REX Shares Files for Ethereum and Solana Staking ETFs

TLDR

• REX Shares files for two new staking ETFs in the US.
• ETFs structured as C-corporations, rare in the industry.
• Management fees set at 0.75%, first-year expenses at 1.28%.

REX Shares Files for Ethereum and Solana Staking ETFs

REX Shares has filed to launch two new exchange-traded funds (ETFs) in the United States that focus on staking Ethereum (ETH) and Solana (SOL). This move represents a novel development as these will be the first US ETFs directly involved in staking these assets.

The prospectus filed with the Securities and Exchange Commission (SEC) outlines that these funds will provide traditional investors exposure to the rewards generated from staking activities. This allows investors to partake in the yield-generating opportunities available through these blockchain networks.

Key Figures and Structure of the ETFs

The analyst James Seyffart from Bloomberg provided insight into the unusual nature of these funds, noting their C-corporation structure. Typically, such a structure is rare in the ETF industry.

These ETFs are structured as c-corps. Which is very rare in the ETF world.

James Seyffart, Bloomberg ETF analyst

The ETFs are listed under the Investment Company Act of 1940, bypassing the longer 19b-4 approval process with the SEC. This accelerated path could potentially bring these ETFs to market within a few weeks if administrative tasks, such as Depository Trust Company clearance and Nasdaq symbol reservation, conclude promptly.

Potential Market Effects and Comparisons to Past Launches

The launch of these staking ETFs is expected to have implications for ETH and SOL markets, although no specific seed capital or institutional investors have been disclosed. Management fees have been set at 0.75%, with total first-year expenses estimated at 1.28%, partly due to tax liabilities inherent in the C-corp structure.

These ETFs are similar to the spot Bitcoin ETFs that launched in January 2024, which drew significant institutional interest. However, the focus on staking distinguishes these new ETFs as they will directly participate in staking to earn native blockchain rewards.

Community and Developer Reactions

The immediate response from the developer and broader cryptocurrency community remains limited, as the filing is still recent. Current discussions tend to focus on the innovative regulatory approach and the expedited path these ETFs are taking.

For direct quotes and industry insights, James Seyffart remains a key commentator on social media, highlighting both the structure and expected timeline of these new offerings. As more information becomes available, further reactions from industry leaders may emerge.