Investment firms REX Financial and Osprey Funds are set to launch the first U.S. exchange-traded funds (ETFs) offering staked Ethereum and Solana exposure after receiving regulatory clearance from the Securities and Exchange Commission. The SEC confirmed it had no further comments on the filings, effectively greenlighting the innovative financial products that combine cryptocurrency price appreciation with staking rewards.
The SEC’s decision follows months of regulatory review and addresses initial concerns about the unique C-corporation structure proposed for these funds. This breakthrough marks a significant milestone for cryptocurrency adoption, providing institutional and retail investors with regulated access to proof-of-stake blockchain rewards through traditional brokerage accounts.
Both ETFs will hold at least 80% of assets in their respective cryptocurrencies, with a minimum of 50% staked to generate yield. The Ethereum product will trade under ticker ESK, while the Solana ETF will use SSK, both listed on Cboe BZX exchange. This structure enables shareholders to benefit from both potential price appreciation and staking income streams.
Get breakout alerts
Install Coin Push to get profitable crypto trading notifications.
Ethereum ETF (ESK)
The ESK fund represents the first staked Ethereum ETF approved for U.S. investors. Designed to track Ethereum’s market performance while generating additional yield, the fund will stake a minimum of 50% of its ETH holdings through institutional validators. This approach provides exposure to Ethereum’s ecosystem without requiring investors to manage private keys or technical staking operations.
Bloomberg ETF analyst Eric Balchunas noted the SEC’s comfort with the fund’s structure after initial regulatory hesitation. The approval signals growing regulatory acceptance of cryptocurrency staking mechanisms within traditional financial products, potentially paving the way for similar offerings from other asset managers.
Solana ETF (SSK)
REX Shares’ Solana staking ETF (SSK) will be the first U.S. ETF offering exposure to SOL with integrated staking rewards. The fund’s prospectus details how it will track Solana’s performance while distributing staking rewards to shareholders, creating a dual-income stream model. Analysts describe the approval as “imminent” following the SEC’s clearance of all regulatory comments.
Nate Geraci, president of ETF Store, highlighted the SEC’s acceptance of the fund’s unconventional C-corporation structure as particularly significant. This structural breakthrough could influence seven other asset managers including Grayscale and VanEck, who have updated their own Solana ETF filings to include staking features following the SEC’s feedback.
REX Financial and Osprey Funds
The collaboration between REX Financial and Osprey Funds represents a strategic partnership combining REX’s ETF expertise with Osprey’s cryptocurrency specialization. Both firms have actively promoted the upcoming launch through a “Coming Soon” campaign on their websites, though an official launch date remains unannounced. The partnership navigated complex regulatory requirements to create these first-of-their-kind products.
REX Shares emphasized that their SOL + Staking ETF introduces “a new era of yield-generating crypto” products in a recent social media announcement. The firms successfully addressed SEC concerns about how staking rewards would be distributed to shareholders within the ETF framework, setting a precedent for future cryptocurrency investment vehicles.
Below is a comparison of the two pioneering ETFs:
| Ticker | Underlying Asset | Staking Minimum | Structure |
|---|---|---|---|
| ESK | Ethereum (ETH) | 50% of assets | C-corporation |
| SSK | Solana (SOL) | 50% of assets | C-corporation |
The C-corporation structure initially drew SEC scrutiny but was ultimately approved as it enables the funds to distribute staking rewards as qualified dividends. This approach differs from conventional ETF models but provides tax advantages for long-term investors seeking cryptocurrency income streams.
Industry analysts anticipate these products could attract significant institutional capital, particularly from investors seeking cryptocurrency exposure without direct asset custody responsibilities. The approval also suggests regulators are becoming more comfortable with cryptocurrency staking mechanics, potentially accelerating similar product approvals.
According to Crowdfund Insider, the SEC’s approval signals a maturing regulatory approach to cryptocurrency investment vehicles. This development follows the agency’s recent request for ETF applicants to revise language around in-kind redemptions and staking practices, indicating evolving guidelines for cryptocurrency-based financial products.
Install Coin Push mobile app to get profitable crypto alerts. Coin Push sends timely notifications – so you don’t miss any major market movements.
The launch of staked ETH and SOL ETFs represents a transformative development for cryptocurrency markets, potentially unlocking billions in institutional capital. These products bridge traditional finance with blockchain economies, offering investors unprecedented access to proof-of-stake rewards through regulated vehicles. Market analysts anticipate these ETFs could drive increased mainstream adoption while setting new precedents for cryptocurrency investment structures.
- ETF
- Exchange-Traded Fund: An investment fund traded on stock exchanges that holds assets like stocks, commodities, or cryptocurrencies. ETFs offer investors diversified exposure without directly owning the underlying assets.
- Staking
- The process of actively participating in transaction validation on proof-of-stake blockchains by locking cryptocurrency holdings. Participants receive rewards for helping secure the network.
- C-corporation
- A legal business structure where the company is taxed separately from its owners. This structure enables the ETFs to distribute staking rewards as qualified dividends to shareholders.
- Proof-of-Stake
- A blockchain consensus mechanism where validators are chosen based on the amount of cryptocurrency they “stake” as collateral. This energy-efficient alternative to proof-of-work powers Ethereum and Solana networks.
