REX Shares Files for Ethereum and Solana Staking ETFs

REX Shares has filed for two innovative ETFs focused on Ethereum and Solana staking, marking a significant development in the crypto investment landscape. The REX-Osprey™ ETH + Staking ETF (ticker: ESK) and the REX-Osprey™ SOL + Staking ETF (ticker: SSK) are designed to provide investors with exposure to staking yields from these two prominent cryptocurrencies.

These ETFs employ a unique legal structure that bypasses the traditional and often lengthy SEC 19b-4 approval process. By utilizing a C-Corporation designation combined with Cayman Islands subsidiaries, REX Shares aims to accelerate market entry and deliver staking exposure in a regulated and investor-accessible format.

The ETFs are structured as C-corporations, a rare setup in the ETF world, which allows them to recognize current and deferred tax liabilities within their Net Asset Value (NAV). This structure makes the funds eligible for SEC compliance regarding staking income. However, it introduces some tax inefficiency due to corporate income tax obligations.

Staking operations for Ethereum and Solana will be conducted through wholly owned subsidiaries based in the Cayman Islands. This indirect exposure is intended to circumvent U.S. restrictions that prevent grantor trust ETFs from engaging directly in staking. The filing under Rule 485(b) of the Investment Company Act of 1940 ensures that the prospectus becomes effective immediately, avoiding the extended 19b-4 approval timeline.

Both ETFs are set to list on Nasdaq in the coming weeks, pending final operational logistics. As 1940 Act funds, they do not require formal SEC approval to begin trading. This innovative approach by REX Shares represents a significant step forward in providing investors with regulated access to staking yields from Ethereum and Solana, potentially paving the way for more efficient structures in the future.