SEC Raises Concern Over REX-Osprey Staking ETFs Proposal

REX Shares and Osprey Funds have filed for approval of staking-based Ethereum and Solana ETFs with the U.S. SEC, expressing potential new opportunities in cryptocurrency investment.

These ETFs, if approved, could alter the cryptocurrency market by integrating staking rewards, yet face scrutiny over regulatory implications and potential impacts on staking pools.

REX-Osprey’s 50% Staking Strategy Faces SEC Review

REX Shares and Osprey Funds have proposed ETFs allowing staking of Ethereum and Solana. This effort aims to innovate cryptocurrency investments by offering federally regulated solutions with custody from Anchorage Digital.

These ETFs plan to invest 80% into ETH and SOL, with 50% of assets actively staked. They are structured as C-corporations, promising staking income as dividends. Anchorage Digital plays a pivotal role as the custody partner.

SEC Scrutiny Raises Stakes for Staking ETFs

The SEC’s scrutiny poses a potential hurdle, as similar proposals by Bitwise have been delayed. Public discourse on platforms such as crypto-Twitter highlights anticipation for the decision’s potential impact on crypto ETF innovations.

Expert analyses suggest the approval could boost on-chain staking rates and crypto investment flows. Past spot Bitcoin and Ether ETF approvals improved market volumes, indicating possible parallels if staking ETFs advance favorably.

Unique Venture: Staking ETFs vs. Historical Trends

Historical BTC and ETH ETFs lacked staking, marking a unique venture if approved. Similarities with past ETFs can guide expectations, considering impacts on prices and market volumes during previous introductions.

Industry analysts envision these ETFs influencing DeFi and staking ecosystems. The SEC’s decision will hinge on regulatory concerns, potentially setting a precedent influencing future crypto assets investment structures.

Nathan McCauley, CEO, Anchorage Digital, stated: “Staking is the next chapter in the history of cryptocurrency ETFs. We are breaking new ground with Rex Shares by providing federally regulated custody and staking support.”

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