- Introduction of Ethereum and Solana staking ETFs by REX Shares.
- Novel ETF structure uses a C-corporation for crypto staking.
- Potential increase in institutional exposure to staking returns.
REX Shares has filed to launch Ethereum and Solana staking ETFs in the US, as announced through a unique C-corporation structure with Cayman Islands subsidiaries, sparking interest in the crypto finance community.
The newly proposed ETFs could impact the crypto market by offering staking rewards within a regulated investment vehicle, attracting institutional interest. Observers anticipate increased mainstream attention and potential shifts in Ethereum and Solana staking strategies.
REX Shares initiated this proposal as part of a strategic push into crypto staking via their ETFs. The company’s leadership chose a rare C-corporation structure with subsidiaries in the Cayman Islands to facilitate staking while circumventing typical regulatory hurdles in the US market.
James Seyffart, a Bloomberg ETF analyst, highlighted that these ETFs are structured under the 1940 Act, bypassing the lengthier 19b-4 process. This unique structure could accelerate their entry into the market, marking a first for staking inclusion in publicly traded US crypto ETFs.
BIG NEWS: @REXShares just filed an effective prospectus for Solana and Ethereum staking ETFs to list here in the US. Don’t know launch date but could be within the next few weeks. These are 40-act funds with a unique structure and do not go through the 19b-4 process.” – Cointelegraph
The proposed ETFs aim to stake assets directly, affecting Ethereum (ETH) and Solana (SOL) by providing protocol rewards to investors. The management fee of 0.75%, including tax-related expenses, suggests a new direction in ETF offerings with potential implications for DeFi tokens like LDO and RPL.
If successful, the ETFs could catalyze broader adoption of staking strategies while increasing institutional crypto exposure. This aligns with trends from the introduction of spot Bitcoin and Ethereum ETFs, which drove significant market inflows.
Insights from historical data reflect that ETF launches typically boost asset liquidity and visibility. The proposal’s acceptance indicates regulatory shifts, potentially influencing how the crypto landscape evolves regarding innovation and regulatory acceptance.
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