REX Shares Set to Launch First Solana Staking ETF in US

ETF provider REX Shares has addressed feedback from the US Securities and Exchange Commission and is expected to soon launch the first-ever Solana staking exchange-traded fund, according to analysts. The SEC appears to be comfortable with the unique ETF structure proposed by REX Shares, which uses an incredibly rare c-corp business structure. This structure had previously been argued by the SEC to conflict with the 6C-11 rule, colloquially known as “the ETF rule.”

ETF Store president Nate Geraci noted that the SEC seems open to this approach, stating that it appears they are comfortable pushing forward with this creative structure. He also mentioned that REX Shares had taken a regulatory end-around with this approach, bypassing the standard 19b-4 filing process that most other ETF providers have used for staking products. Many of these products are still awaiting a decision from the SEC.

Echoing Geraci’s sentiment, ETF analyst James Seyffart highlighted that the way REX Shares structured their Solana (SOL) staking ETF proposal is very rare in the ETF world. On Friday, Geraci confirmed that it looks like the SEC believes comments have been resolved, marking the commencement of what he termed as “crypto ETF summer.”

Analyst Eric Balchunas cited an email screenshot to confirm that REX Shares have addressed the SEC’s comments, indicating that they are good to launch. In a post on the same day, REX Shares announced that “the first-ever staked crypto ETF” in the US is coming soon. The REX-Osprey SOL and staking ETF is designed to track the performance of Solana while generating yield through onchain staking, marking a new era of yield-generating crypto exposure.

Staking in crypto ETFs has been highly anticipated by the industry. On March 20, BlackRock’s head of digital assets, Robbie Mitchnick, described the firm’s Ether ETF as a “tremendous success” but acknowledged a key limitation. Mitchnick said that the ETF is “less perfect” without staking. The launch of the Solana staking ETF is expected to provide investors with a new avenue to gain exposure to the Solana ecosystem. According to the analyst's forecast, the ETF could attract substantial capital, given the growing interest in staking and the potential for higher yields compared to traditional investment vehicles. The ETF would allow investors to participate in the staking process without the need for technical expertise or the risks associated with holding cryptocurrencies directly.

The Solana blockchain has gained traction in recent years due to its high transaction speeds and low fees, making it an attractive alternative to other smart contract platforms. The launch of the Solana staking ETF could further accelerate this trend, as it would provide a more accessible and regulated way for investors to engage with the Solana ecosystem. The ETF would also benefit from the growing demand for staking services, as more investors seek to earn passive income from their cryptocurrency holdings.

The potential launch of the Solana staking ETF comes at a time when the cryptocurrency market is experiencing increased regulatory scrutiny. The SEC's approval of the ETF would be a significant step forward for the industry, as it would demonstrate the regulator's willingness to embrace innovative financial products. However, it remains to be seen whether the ETF will be able to attract sufficient capital to justify its launch, given the current market conditions and the competitive landscape.

In conclusion, the imminent launch of the Solana staking ETF represents a significant development for the cryptocurrency industry. The ETF would provide investors with a new way to gain exposure to the Solana ecosystem, while also benefiting from the growing demand for staking services. The SEC's approval of the ETF would be a positive sign for the industry, as it would demonstrate the regulator's willingness to embrace innovative financial products. However, the success of the ETF will ultimately depend on its ability to attract sufficient capital and compete with other investment vehicles in the market.