The first-ever U.S. exchange-traded funds that both track crypto prices and deliver staking rewards are on the verge of launching.
On Friday, the Securities and Exchange Commission signaled it had no remaining objections to REX Shares and Osprey Funds’ proposal for a pair of C-corporation ETFs that will hold Ethereum and Solana. The approval effectively removes the final regulatory hurdle standing in the way of these groundbreaking products.
REX and Osprey first filed their plans in May to create funds that stake a portion of their assets, generating yield for shareholders. Initially, SEC staff raised questions about whether the products met the legal standards for ETFs, pausing the process.
Those concerns now appear resolved.
“They are good to launch it looks like,” Bloomberg senior ETF analyst Eric Balchunas posted on X.
The funds would become the first in the United States to combine crypto exposure and staking payouts within a publicly traded vehicle—a move many view as an important step in mainstreaming token-based yields.
Solana and Ethereum Staking ETFs Coming to Market
In a post on Friday, REX Shares confirmed that its Solana staking ETF—one of the two products covered by the approval—would be “coming soon.” The Solana fund will trade under the ticker SSK, while the Ethereum staking ETF is expected to trade under ESK.
Both ETFs are set to list on Cboe BZX, a popular venue for crypto-linked securities.
While REX spotlighted Solana in its announcement, the registration statement includes both Ethereum and Solana strategies. If launched, the Solana ETF would be only the second U.S. product providing direct exposure to SOL prices, following Volatility Shares’ Solana futures ETF.
The combination of price tracking and staking rewards has caught the attention of crypto-savvy investors eager to earn passive income without directly managing private keys or staking infrastructure.
A Clever Legal Workaround Speeds Up Approval
While multiple issuers—including Invesco and Galaxy—are racing to bring spot Solana ETFs to market, the REX-Osprey approach takes a different path to get ahead of the pack.
Rather than structuring the ETFs as traditional Regulated Investment Companies, REX and Osprey elected to register the funds as taxable C-corporations. This choice has significant implications:
- Tax treatment: Staking yields will be taxed inside the fund before being paid out as dividends to investors.
- Faster launch timeline: Because C-corp structures avoid the same regulatory bottlenecks as other ETFs, they effectively leapfrogged ahead of spot ETF contenders waiting for months-long reviews.
Management fees for both products are set at 0.75%, though the internal tax burden means effective costs will often be higher in practice.
Bloomberg’s Balchunas has predicted that approvals for more conventional spot Solana ETFs could still arrive within the next two to four months. Until then, REX and Osprey’s staking ETFs are positioned to capture first-mover advantage among investors seeking yield-bearing crypto exposure.
Quick Facts
- The SEC cleared REX Shares and Osprey Funds’ staking ETFs for launch, removing the final regulatory hurdle.
- The funds will track Ethereum and Solana while distributing staking yields as taxable dividends.
- The products will trade under the tickers ESK (Ethereum) and SSK (Solana) on Cboe BZX.
- Unlike typical ETFs, these are structured as C-corporations to expedite approval and handle staking tax treatment internally.
