Analysts: Ethereum and Solana Staking ETFs Could Launch Soon, But Remain Rare

 

REX Shares Bypasses Traditional Path for Ethereum and Solana Staking ETFs, Launch Expected Soon

REX Shares may soon bring the first Ethereum and Solana staking ETFs to the U.S. market, thanks to a creative regulatory strategy that ETF analysts describe as a “workaround.” The launch of these ETFs is likely imminent, according to industry experts.

The staking feature has been a long-anticipated addition to Ether ETFs since their debut in July 2024. Many in the industry argue that without staking, these investment products are incomplete.

A Rare ETF Structure

According to ETF analyst James Seyffart, REX Shares’ filings employ an uncommon structure in the ETF world: the funds are classified as C-corporations.

“This is very rare in the ETF space,” Seyffart noted in a May 30 post on X (formerly Twitter). In its filing, REX Shares explained that the C-corp structure means the fund will incur both current and deferred tax liabilities, which will be reflected in its Net Asset Value (NAV).

Seyffart added that the proposed Ether and Solana staking ETFs are “’40 Act funds” with a unique design that avoids the traditional 19b-4 SEC approval process.

This comes shortly after the SEC delayed a decision on Bitwise’s attempt to add staking to its Ether ETF on May 21 — a delay that Seyffart said was expected, as the SEC often uses the full review period for 19b-4 filings.

Launches Expected Within Weeks

REX Shares' approach involves gaining spot exposure to Ether and Solana through Cayman Islands-based subsidiaries — a strategic maneuver that may have helped secure a degree of regulatory approval.

“It’s a clever use of legal and regulatory tools to bring these products to market,” Seyffart said. While the structure has trade-offs, he added that one clear benefit appears to be easing SEC concerns.

Nate Geraci, president of The ETF Store, echoed that view, calling REX Shares’ approach a “regulatory end-around.” He confirmed that the ETFs aim to stake at least 50% of their holdings in Ethereum and Solana.

Staking has long been a sought-after feature in crypto ETFs. Back in March, BlackRock’s head of digital assets, Robbie Mitchnick, called their Ether ETF a “tremendous success,” but admitted it was “less perfect” without staking capabilities.