Briefly
The Rex-Osprey Solana + Staking ETF will maintain SOL through a Cayman subsidiary and stake a minimum of 50% of its holdings.
It’s registered below the Funding Firm Act and taxed as a C-corp, in contrast to conventional spot ETFs.
The launch comes as a minimum of 9 spot Solana ETFs, filed below the Securities Act, await SEC approval.
Rex Shares and Osprey Funds will checklist the primary U.S. exchange-traded fund providing direct publicity to a cryptocurrency with on-chain staking rewards on Wednesday, a spokesperson has confirmed to Decrypt.
The Rex-Osprey Solana + Staking ETF will maintain Solana, the sixth-largest digital asset by market capitalization, by way of a Cayman Islands subsidiary, aiming to generate yield by staking a minimum of half of these holdings, in line with a prospectus.
The fund “can be launching,” the spokesperson confirmed in a Monday e-mail to Decrypt, simply hours after fund Rex Shares teased in an X submit that the fund can be arriving “Wednesday.”
It marks the “first-ever staked crypto ETF within the U.S.,” Rex Shares stated in its submit.
It is price noting that whereas the Rex-Osprey ETF holds Solana straight and tracks its spot value, it isn’t structured as a spot ETF within the conventional regulatory sense.
As an alternative, it’s registered below the Funding Firm Act and taxed as a C-corporation, in distinction to the commodity belief construction utilized by Bitcoin and Ethereum spot ETFs.
Rex Shares’ submit on X comes simply three days after the SEC responded to the corporate’s letter earlier on Friday, stating that it had no further feedback on the fund. Rex and Osprey proposed the ETF in Could, together with an Ethereum ETF that might additionally present staking rewards.
The fund’s launch comes forward of a possible wave of spot Solana ETFs, that are anticipated to be registered below the Securities Act, with a minimum of 9 filings at the moment below evaluation by the SEC. Seven of these issuers not too long ago filed amended S-1 types particularly clarifying language round staking.
Bloomberg analysts have projected a 95% chance that these ETFs will obtain the regulatory inexperienced mild, doubtless throughout the subsequent two to 4 months.
Staking refers back to the technique of pledging tokens to a decentralized community in trade for yield, or monetary rewards. It has been a delicate situation for regulators within the prior administration, who expressed considerations over the monetary and security-related dangers posed by the observe.
The SEC is at the moment reviewing functions for roughly 80 funds that both monitor the continued efficiency of a significant altcoin or present another variation of publicity to digital belongings. These proposals observe the dramatic success of spot Bitcoin ETFs and the respectable efficiency of spot Ethereum funds since their approval final 12 months.
The Bitcoin-focused merchandise have accrued almost $50 billion in web investments, whereas the Ethereum funds have netted about $4.1 billion in belongings.
Solana was not too long ago buying and selling at about $155, up greater than 2% over the previous 24 hours, in line with knowledge supplier CoinGecko. The asset, which has carried out sluggishly for a lot of the 12 months, has risen about 10% throughout the previous week amid rising optimism in regards to the prospects of a Solana fund.
In an X submit on Friday, Bloomberg Senior ETF Analyst Eric Balchunas speculated that Rex and Osprey had been making an attempt to introduce their Solana product earlier than the spot funds garner approval.
“They’re little question making an attempt to get it to [market] forward of the spot ones,” he wrote, including: “…right here’s the SEC saying it has no additional feedback, so they’re good to launch it seems like. Wow.”
Edited by Sebastian Sinclair
Each day Debrief Publication
Begin each day with the highest information tales proper now, plus unique options, a podcast, movies and extra.
