- REX Shares to introduce first U.S. ETH, SOL staking ETFs.
- ETH and SOL ETFs launch expected within weeks.
- Innovative structure circumvents SEC hurdles effectively.
REX Shares will launch the first Ethereum and Solana staking ETFs in the U.S., using a unique regulatory approach.
This move positions REX Shares at the forefront of crypto ETFs, with potential impact on market liquidity and staking practices.
New Staking ETFs Use C-Corp for Approval
REX Shares has filed a prospectus for the first U.S. staking ETFs based on Ethereum and Solana. These products utilize a C-Corp and Cayman subsidiary structure to navigate regulatory challenges.
The ETFs aim to hold and stake at least 50% of their Solana and Ether exposure. This regulatory approach has garnered attention for potentially facilitating SEC approval for innovative products.
Experts Forecast Boost in Crypto Yield Demand
Market experts, such as Eric Balchunas and Nate Geraci, view these ETFs as a significant step forward. The anticipated launch reflects deep institutional demand for yield-bearing crypto assets.
The ETFs are expected to drive increased participation in Ethereum and Solana staking, potentially boosting total value locked (TVL) in these ecosystems and affecting liquidity.
Potential Liquidity Surge Mirrors Bitcoin ETF Impact
Earlier ETF launches for Bitcoin have illustrated the potential for increased liquidity. Staking ETFs could similarly boost market engagement, marking a first for the U.S. crypto sector.
By employing innovative legal frameworks, REX Shares provides a model that may shape future regulatory strategies. This could set precedents for further crypto ETF developments beyond traditional frameworks.
Conclusion
James Seyffart, ETF Research Analyst at Bloomberg, observed, “All of this, assuming they launch in the near future, is a bunch of clever legal and regulatory workarounds to get these products to market. There are pros and cons to the structure, but it looks like one pro is that this was one way to get some level of signoff from the SEC.”
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