In short
- The Rex-Osprey Solana + Staking ETF will maintain SOL through a Cayman subsidiary and stake at the very least 50% of its holdings.
- It’s registered beneath the Funding Firm Act and taxed as a C-corp, not like conventional spot ETFs.
- The launch comes as at the very least 9 spot Solana ETFs, filed beneath the Securities Act, await SEC approval.
Rex Shares and Osprey Funds will checklist the primary U.S. exchange-traded fund providing direct publicity to a cryptocurrency with on-chain staking rewards on Wednesday, a spokesperson has confirmed to Decrypt.
The Rex-Osprey Solana + Staking ETF will maintain Solana, the sixth-largest digital asset by market capitalization, via a Cayman Islands subsidiary, aiming to generate yield by staking at the very least half of these holdings, in accordance with a prospectus.
The fund “might be launching,” the spokesperson confirmed in a Monday e-mail to Decrypt, simply hours after fund Rex Shares teased in an X put up that the fund could be arriving “Wednesday.”
It marks the “first-ever staked crypto ETF within the U.S.,” Rex Shares stated in its put up.
It is price noting that whereas the Rex-Osprey ETF holds Solana straight and tracks its spot worth, it isn’t structured as a spot ETF within the conventional regulatory sense.
As an alternative, it’s registered beneath the Funding Firm Act and taxed as a C-corporation, in distinction to the commodity belief construction utilized by Bitcoin and Ethereum spot ETFs.
Rex Shares’ put up on X comes simply three days after the SEC responded to the corporate’s letter earlier on Friday, stating that it had no further feedback on the fund. Rex and Osprey proposed the ETF in Could, together with an Ethereum ETF that may additionally present staking rewards.
The fund’s launch comes forward of a possible wave of spot Solana ETFs, that are anticipated to be registered beneath the Securities Act, with at the very least 9 filings at present beneath evaluation by the SEC. Seven of these issuers lately filed amended S-1 types particularly clarifying language round staking.
Bloomberg analysts have projected a 95% chance that these ETFs will obtain the regulatory inexperienced gentle, seemingly inside the subsequent two to 4 months.
Staking refers back to the technique of pledging tokens to a decentralized community in change for yield, or monetary rewards. It has been a delicate concern for regulators within the prior administration, who expressed issues over the monetary and security-related dangers posed by the observe.
The SEC is at present reviewing purposes for about 80 funds that both monitor the continuing efficiency of a significant altcoin or present another variation of publicity to digital belongings. These proposals comply with the dramatic success of spot Bitcoin ETFs and the respectable efficiency of spot Ethereum funds since their approval final yr.
The Bitcoin-focused merchandise have accrued almost $50 billion in internet investments, whereas the Ethereum funds have netted about $4.1 billion in belongings.
Solana was lately buying and selling at about $155, up greater than 2% over the previous 24 hours, in accordance with knowledge supplier CoinGecko. The asset, which has carried out sluggishly for a lot of the yr, has risen about 10% through the previous week amid rising optimism concerning the prospects of a Solana fund.
In an X put up on Friday, Bloomberg Senior ETF Analyst Eric Balchunas speculated that Rex and Osprey had been attempting to introduce their Solana product earlier than the spot funds garner approval.
“They’re little question attempting to get it to [market] forward of the spot ones,” he wrote, including: “…right here’s the SEC saying it has no additional feedback, so they’re good to launch it appears to be like like. Wow.”
Edited by Sebastian Sinclair
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