Ethereum News Today: Regulatory Shifts Enable Staking-Enhanced Crypto ETF Surge

REX-Osprey, a joint initiative between REX Shares and Osprey Funds, has filed 21 new cryptocurrency exchange-traded funds (ETFs) with the U.S. Securities and Exchange Commission (SEC), including staking-enabled products for altcoins such as Cardano (ADA), Avalanche (AVAX), and Polkadot (DOT). The filings, submitted on October 4, 2025, aim to capitalize on the SEC's updated rules for spot ETFs, which expedite processing times for commodity-based trusts. These ETFs are designed to integrate on-chain staking rewards into investor returns, requiring custodial arrangements to ensure liquidity and securityREXShares and Osprey Propose 21 Altcoin ETFs with Staking Options^[1]. The proposed suite spans tokens like Solana (SOL), Ethereum (ETH), and Bittensor (BTTR), with the majority incorporating staking features to generate additional yield for investorsREX-Osprey Files 21 New Crypto ETFs with Staking Options At SEC^[2].

The filings reflect a broader trend of innovation in the crypto ETF space, as issuers seek to diversify exposure to major altcoins while leveraging staking mechanisms. The proposed ETFs include single-asset strategies for tokens such as AAVE, ATOM, and ENA, alongside multi-token offeringsREX-Osprey and Defiance file 27 crypto ETFs, including staking and 3x leverage^[4]. By integrating staking, these funds aim to offer investors a dual return stream from both price appreciation and protocol-based rewards. This approach mirrors the success of REX-Osprey's existing Ethereum staking ETF (ESK), which launched in September 2025 and has already attracted over $300 million in assets under managementREX-Osprey™ Launches First Ethereum Staking ETF in the U.S.^[3].

To comply with U.S. tax and regulatory requirements, the funds utilize offshore structures through Cayman Islands subsidiaries. These entities mirror the strategies of U.S.-listed funds and enable the firms to maintain regulated investment company (RIC) status. The filings also indicate that up to 40% of the funds' assets could be allocated to non-U.S. exchange-traded products (ETPs), including offerings from 21Shares, CoinShares, and ValourREX-Osprey Files 21 New Crypto ETFs with Staking Options At SEC^[2]. This global allocation strategy underscores the growing integration of cross-border crypto infrastructure in ETF design.

The SEC's recent approval of generic listing standards for crypto ETPs has accelerated the filing process, removing the need for 19b-4 rule reviews and shifting bottlenecks to S-1 filingsREX-Osprey and Defiance file 27 crypto ETFs, including staking and 3x leverage^[4]. However, the U.S. government shutdown has temporarily stalled processing, with limited staff available to review applications. Analysts, including Bloomberg's James Seyffart, suggest that regulatory clarity under the new framework makes approvals a matter of time rather than eligibilityREX-Osprey and Defiance file 27 crypto ETFs, including staking and 3x leverage^[4]. Once operations resume, the streamlined process could see these ETFs reach the market within weeks, provided no last-minute objections arise.

The surge in filings highlights the competitive landscape for crypto ETFs, with rival issuer Defiance recently submitting six leveraged products, including 3x long and short exposure to Bitcoin, Ethereum, and SolanaREX-Osprey and Defiance file 27 crypto ETFs, including staking and 3x leverage^[4]. While REX-Osprey's focus remains on staking and diversified altcoin exposure, the broader market is seeing a proliferation of products tailored to varying risk profiles. This trend aligns with growing institutional demand for regulated crypto access, despite ongoing regulatory scrutiny of staking-based structuresREX-Osprey ETFs with BTC, XRP, DOGE Clear SEC Review^[5].