- 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.”
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.”
Geraci emphasized that REX Shares plans to stake “at least 50%” of the assets, positioning the products to meet long-standing investor demands for yield-based exposure.
Rarity and Innovation Collide
Staking, once considered a technical task best left to crypto natives, is now entering mainstream finance. With the potential ETFs, investors would indirectly benefit from staking rewards, similar to earning interest, without managing private keys or dealing with validator nodes.
The industry has long seen staking as a missing piece in the existing crypto ETF ecosystem. BlackRock’s digital assets head Robbie Mitchnick admitted that while their Ether ETF was a “tremendous success,” it’s “less perfect” without staking capabilities. REX’s filing could change that narrative.
“The structure may not be perfect,” Seyffart noted, “but it looks like one pro is that this was one way to get some level of signoff from the SEC.”
Regulatory Pushback Avoided, For Now
The Securities and Exchange Commission (SEC) has been reluctant to approve staking features in spot ETFs. It recently delayed decisions on similar requests from Bitwise and Grayscale. REX’s move avoids that waiting game entirely.
The SEC’s delay of Grayscale’s Avalanche and Cardano ETF proposals, along with renewed scrutiny into WisdomTree’s XRP ETF, shows that traditional filing methods face significant headwinds. In contrast, REX’s filings might succeed where others have stalled—not because the regulations changed, but because REX changed its strategy.
“This could be a turning point,” said Geraci. “It shows there’s still room to innovate within the boundaries of compliance.”
Eyes on the SEC, Markets on the Move
Investors are paying close attention. The filings come on the heels of the SEC’s recent clarification that staking via Proof-of-Stake networks is not necessarily a securities transaction. That subtlety provides filings such as REX’s with a potential go-ahead.
In the meantime, industry insiders think such ETFs can bring in a flood of others. “It’s not just about Ethereum or Solana,” said one expert. “It’s about opening the door to passive income strategies in digital assets through familiar financial instruments.”
REX’s move may redefine what’s possible in the U.S. crypto ETF landscape—and could mark a key step toward mass adoption of staking at the institutional level.
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