The first Ethereum and Solana staking exchange-traded funds (ETFs) could launch in the United States within weeks through a unique regulatory structure proposed by REX Shares, according to multiple analysts. This development follows Friday’s SEC filing that bypasses traditional approval processes through a C-Corporation framework under the 1940 Investment Company Act. Market observers note this could mark a watershed moment for institutional crypto adoption.
REX Shares’ proposed funds would become the first ETFs offering direct exposure to staked ETH and SOL while tracking their spot prices. Ethereum currently trades at $3,800, up 2.5% in 24 hours, with Solana at $165 following a 3.1% gain, according to Blockchain.News price data. The funds aim to stake at least 50% of holdings while maintaining 80% asset allocation to their respective cryptocurrencies.
This regulatory workaround avoids the SEC’s standard 19b-4 approval process that delayed previous crypto ETFs. ETF analyst James Seyffart confirmed the filing’s effectiveness via social media, stating launch could occur in “weeks rather than months”.
Get breakout alerts
Install Coin Push to get profitable crypto trading notifications.
REX Shares’ Innovative ETF Structure
The proposed ETFs use a rare C-Corporation tax structure rather than the standard regulated investment company (RIC) framework. This enables staking rewards distribution while managing tax liabilities through net asset value adjustments. REX partnered with Anchorage Digital Bank for custody solutions, leveraging its status as the only federally chartered bank approved for staking operations.
Ethereum Staking ETF Implications
The Ethereum fund arrives as analysts debate whether staking yields should be included in spot ETH ETFs approved last July. By offering 4-5% annual staking rewards through Anchorage’s infrastructure, REX’s product could pressure competitors like BlackRock to update their ETH ETF structures.
Solana’s First Spot ETF Entry
This filing marks Solana’s debut in spot ETF products, surpassing existing futures-based offerings. The SOL ETF’s structure mirrors Ethereum’s with key differences:
| Metric | ETH ETF | SOL ETF |
|---|---|---|
| Asset Allocation | ≥80% ETH | ≥80% SOL |
| Staking Commitment | ≥50% staked | ≥50% staked |
| Current Price | $3,800 | $165 |
Custody and Regulatory Considerations
Anchorage Digital CEO Nathan McCauley emphasized the significance of combining qualified custodianship with staking infrastructure: “This partnership demonstrates how regulated entities can safely expand crypto access while maintaining compliance”. The SEC’s acceptance of this filing suggests tacit approval of staking mechanics when properly structured through banking partners.
Market analysts anticipate these ETFs could attract $500M-$1B in combined inflows within the first quarter. Crypto enthusiasts can track real-time price movements through platforms like CoinPush, which provides instant market alerts.
Install Coin Push mobile app to get profitable crypto alerts. Coin Push sends timely notifications – so you don’t miss any major market movements.
Market Impact Outlook
The ETF launches could pressure exchanges through reduced direct staking participation while increasing institutional SOL exposure. Bernstein analysts suggest this might help Solana capture 15-20% of Ethereum’s market share in proof-of-stake applications within 18 months. However, tax complexities from the C-Corp structure may limit retail adoption compared to traditional ETFs.
- C-Corporation
- A tax structure where the fund pays corporate taxes before distributing dividends, rarely used in ETFs due to double taxation risks.
- 40-Act Funds
- Investment vehicles regulated under the 1940 Investment Company Act, requiring greater disclosure but enabling faster approvals than securities-based products.
- Staking
- The process of locking crypto assets to support blockchain operations in exchange for yield, typically 3-6% annually for major proof-of-stake networks.
- Qualified Custodian
- A regulated entity meeting SEC standards for safeguarding client assets, in this case provided by Anchorage Digital Bank.
