“Anticipated Launch of Unique Staking ETFs for ETH and SOL May Be Just Around the Corner”

The initial Ethereum and Solana staking exchange-traded funds (ETFs) may emerge in the United States within weeks, following a recent submission from ETF provider REX Shares that utilized “regulatory workarounds,” according to ETF experts.

The staking element has been eagerly awaited for spot Ether (ETH) ETFs since their inauguration in July 2024, with some industry leaders suggesting the product feels unfinished without it.

REX Shares submissions exhibit a “distinct structure”

“These ETFs are organized as c-corps, which is quite unusual in the ETF landscape,” ETF analyst James Seyffart stated regarding the REX Shares submission in a May 30 X post.

“While I don’t know the launch date, it could occur within the next few weeks.”

REX Shares clarified in the submission that the fund “is designated as a C-corporation for tax reasons, and, accordingly, will incur both current and deferred tax obligations. Any current or deferred tax liabilities, if applicable, will be reflected in the Fund’s Net Asset Value.”

Seyffart noted that the proposed Solana (SOL) and Ether staking ETFs by REX Shares “are 40-act funds with a distinctive structure and do not undergo the 19b-4 process.”

This follows the SEC postponing its verdict on Bitwise’s request to incorporate staking into its Ether ETF on May 21. At that time, Seyffart mentioned that the delay was anticipated as the SEC “typically utilizes the full timeframe to respond to a 19b-4 submission.”

The release of two crypto ETFs “is imminent”

Seyffart indicated that the funds will acquire spot exposure to Ether and Solana “through Cayman subsidiaries.”

“All of this, assuming they are launched soon, is a series of clever legal and regulatory workarounds to bring these products to the market,” Seyffart remarked.

Related: Bitcoin ETFs experience first joint outflow in two weeks, but BlackRock defies trends

“There are advantages and disadvantages to the structure, but it appears one benefit is that this was a way to secure some form of approval from the SEC,” Seyffart commented.

In a similar vein, ETF Store President Nate Geraci noted that REX Shares opted for “the regulatory end-around.”

“It appears that the launch of two crypto ETFs is near,” Geraci mentioned, stating that both ETFs aim to stake “at least 50%” of Solana and Ether.

This has been a highly anticipated feature for many in the field. On March 20, BlackRock’s head of digital assets, Robbie Mitchnick, referred to the firm’s Ether ETF as a “remarkable success” but acknowledged a significant limitation. Mitchnick remarked that the ETF is “less ideal” without staking.

Magazine: Coinbase hack illustrates that the law likely won’t shield you: Here’s why