First-Ever ETH and SOL Staking ETFs May Launch in Weeks Amid SEC Workaround

In a move that could mark a major leap forward for crypto investing in the U.S., ETF provider REX Shares has filed to launch the first Ethereum (ETH) and Solana (SOL) staking exchange-traded funds (ETFs), using a novel legal approach that avoids some of the industry’s most cumbersome regulatory pathways.

ETF analysts, including Bloomberg’s James Seyffart, say the launches could occur “within the next few weeks,” making them the first products of their kind to hit the American market.

Regulatory Workaround May Unlock Staking for U.S. ETFs

Unlike most ETFs that follow the traditional ’40 Act fund structure and require 19b-4 filings with the Securities and Exchange Commission (SEC), REX Shares’ filings take a different route. The proposed funds are structured as C-corporations, a rare designation in the ETF industry, which allows them to bypass the SEC’s longer approval timeline.

“These ETFs are structured as c-corps, which is very rare in the ETF world,” Seyffart noted in a May 30 post on X (formerly Twitter), adding that this unique format helps “get some level of signoff from the SEC.”

The SEC recently delayed its decision on Bitwise’s proposal to add staking to its Ether ETF, a move that Seyffart predicted due to the regulatory body’s typical approach to 19b-4 filings. The REX Shares strategy avoids this bottleneck entirely.

Also read: Understanding the Benefits of Liquid Staking

ETH and SOL Exposure via Cayman Subsidiaries

According to the filing, the REX Shares ETFs will gain spot exposure to both Ethereum and Solana via Cayman-based subsidiaries—a structure commonly used in commodities and futures-based ETFs to manage tax obligations and international exposure.

As the funds are classified as C-corporations for tax purposes, they will “incur current and deferred tax expenses,” which will be reflected in the net asset value (NAV) of the funds. While that tax structure may add a layer of complexity, analysts suggest it’s a worthwhile trade-off to bring staking to market.

“There are pros and cons to the structure, but one pro is that this was one way to get some level of signoff from the SEC,” Seyffart commented.

Targeting 50% Staking Allocation

Nate Geraci, president of ETF Store, echoed Seyffart’s assessment and described REX Shares’ approach as a “regulatory end-around.” He said both proposed funds aim to stake “at least 50%” of their Ether and Solana holdings, fulfilling a long-awaited demand from crypto-native investors.

The launch would represent a watershed moment for staking in traditional finance. Staking—the process of locking up crypto assets to help secure proof-of-stake blockchains in exchange for rewards—has been conspicuously absent from U.S.-based crypto ETFs due to legal ambiguity and regulatory resistance.

Also read: Maximizing Returns: A Guide to EOS Staking

Institutional Pressure Mounts for Staking Access

The push for staking access has grown louder since spot Ether ETFs were approved for launch in July 2024. At the time, BlackRock’s head of digital assets, Robbie Mitchnick, called the company’s Ether ETF a “tremendous success,” but admitted that it was “less perfect” without staking capabilities.

REX Shares’ new filings may finally bridge that gap.

A Critical Milestone in Crypto ETF Evolution

If approved and launched, the ETFs would signal that staking—a core function of proof-of-stake blockchains—is gaining mainstream financial legitimacy in the U.S. and could pave the way for broader integration into other institutional investment vehicles.

Also read: Staking vs Mining: Which is Better?

Still, analysts caution that the C-corp structure adds tax complexity, and the long-term performance of these products will likely depend on how efficiently staking rewards are generated and managed within that framework.

Yet, for now, the industry is watching closely. As Geraci put it: “Looks like two crypto ETF launches are imminent.”