In a significant development for the cryptocurrency investment landscape, REX Financial and Osprey Funds are on the cusp of launching the firststaked Ethereum (ETH) and Solana (SOL) exchange-traded funds (ETFs) in the United States.
According to recent reports, the U.S. Securities and Exchange Commission (SEC) has cleared a critical hurdle by raising no objections to the firms’ latest filings, paving the way for these innovative financial products to potentially hit the market soon.
This marks a notable shift from earlier regulatory concerns and could herald a new era for crypto-based ETFs that incorporate staking rewards.
Earlier this year, the SEC expressed reservations about whether the proposed REX-Osprey ETH and SOL ETFs qualified as ETFs under existing regulations.
In May 2025, the agency flagged issues with the funds’ structure, questioning whether they met the legal definition of an “investment company” under the Investment Company Act of 1940.
Specifically, the SEC highlighted concerns about the staking mechanisms, which allow investors to earn rewards by locking up tokens to support blockchain networks.
The regulator also raised questions about the funds’ use of Form N-1A, typically used for mutual funds and traditional ETFs, suggesting that the unique structure of these staked crypto ETFs might require a different regulatory approach.
At the time, analysts noted that the SEC’s cautious stance reflected broader uncertainties about integrating staking—a hallmark of proof-of-stake blockchains like Ethereum and Solana—into the ETF framework.
Despite these initial setbacks, REX Financial and Osprey Funds have worked diligently to address the SEC’s concerns.
Recently, Bloomberg ETF analyst Eric Balchunas reported that the SEC had reviewed the firms’ revised filings and found no unresolved issues, signaling a green light for the ETFs’ potential launch.
This development follows a request from REX and Osprey to confirm that all regulatory comments had been addressed, demonstrating their commitment to aligning with the SEC’s expectations.
The firms have also launched a “Coming Soon” campaign, prominently featuring the staked ETH and SOL ETFs on their website, though they have not yet confirmed an official launch date.
The proposed ETFs are designed to track the performance of Ethereum and Solana while generating additional yield through staking.
At least 80% of the funds’ assets will be invested in ETH or SOL, with a minimum of 50% staked to earn rewards, offering investors exposure to both price appreciation and staking income.
Unlike traditional ETFs, these funds are structured as C-corporations, an unconventional choice that initially drew scrutiny but now appears to have been resolved.
The REX-Osprey SOL + Staking ETF, for instance, will carry an annual operational fee of 1.4%, while the Ethereum counterpart will charge 1.28%, covering management and staking services.
Industry experts are optimistic about the implications of these ETFs. Analysts predict that their approval could unlock significant liquidity in the cryptocurrency market, attracting institutional and retail investors seeking regulated exposure to staking rewards.
The SEC’s openness to staking within ETF structures also suggests a broader acceptance of crypto innovation, especially following its recent guidance that staking activities do not inherently violate securities laws.
Other asset managers, including Grayscale, VanEck, and Franklin Templeton, have similarly updated their Solana ETF filings to include staking capabilities, indicating a growing trend in the industry.
While spot Ethereum ETFs have been trading since last year, a spot Solana ETF has yet to be approved, making the REX-Osprey proposal a noteworthy one.
The resolution of SEC concerns marks a pivotal moment for crypto investment products, potentially setting a precedent for future staking-based ETFs.
As REX Financial and Osprey Funds prepare for launch, the crypto industry will be observing developments carefully, hopeful that these products will bridge traditional finance and decentralized networks, driving further adoption of Ethereum and Solana.