REX-Osprey Ethereum, Solana staked ETFs may launch soon as SEC raises no objections

ETF provider REX Financial and asset management firm Osprey Funds may be on the verge of launching the first staked Ethereum (ETH) and Solana (SOL) ETFs in the US, following a new development in their regulatory process.

According to Bloomberg ETF analyst Eric Balchunas, the SEC said in a June 27 statement that it had "no further comments" on the firms' filings.Source: Eric Balchunas

The update came in response to a request submitted by REX and Osprey to the SEC, seeking confirmation that all staff comments on their staked Ethereum and Solana ETFs had been resolved.

REX and Osprey filed for staked SOL and ETH ETFs in late May, proposing ETF structures that would allow the funds to hold and stake the two prominent crypto assets and distribute stake rewards to shareholders.

However, the SEC immediately raised concerns that REX and Osprey's proposed funds may not qualify as ETFs under existing rules due to their unique C-corporation business structure. The structure conflicts with the ETF rule, which defines acceptable corporate forms for ETFs.

Despite regulatory hurdles, industry professionals were hopeful for a resolution, allowing the funds to bring new liquidity into the crypto market.

"Here’s the SEC saying it has no further comments, so they are good to launch it looks like," said Balchunas.

REX and Osprey have also signaled readiness from the product side. A newly released “Coming Soon” campaign prominently features the upcoming staked ETH and SOL ETFs on their website, though no official confirmation has been issued regarding approval or launch dates.

The SEC has signaled potential approval for Solana ETFs later this year, following a recent request to revise language around in-kind redemptions and staking practices, suggesting a growing openness to incorporating staking into ETF structures.

All seven asset managers seeking to launch Solana ETFs, including Grayscale, VanEck, 21Shares, Canary Capital, Bitwise, and Franklin Templeton, have updated their filings to include staking capabilities in response to the SEC’s feedback.