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The cryptocurrency investment space may soon experience a major shift, as Ethereum (ETH) and Solana (SOL) staking exchange-traded funds (ETFs) are expected to make their U.S. market entry within weeks. According to ETF analysts, a recent filing by REX Shares includes a “unique structure” that could bypass traditional regulatory hurdles, signaling imminent rollout.
REX Shares’ strategy is being described as a clever workaround to existing oversight challenges. The proposed ETFs will allow investors to gain exposure to Ethereum and Solana while also participating in staking rewards — a long-awaited feature among institutional and retail investors alike.
REX Shares Files “Very Rare” ETF Structure
ETF analyst James Seyffart noted in a post on X (formerly Twitter) on May 30 that the REX Shares ETFs are “structured as C-corporations,” a rare choice in the ETF landscape. Most ETFs follow the Regulated Investment Company (RIC) model, but the C-corp structure could support staking features while managing tax obligations differently.
“These ETFs are 40-act funds with a unique structure and do not go through the 19b-4 process,” Seyffart explained. This is noteworthy because the 19b-4 process is typically required for SEC approval. By skipping this, REX Shares may fast-track their debut.
The company also mentioned that these funds would bear current and deferred tax expenses, which will be reflected in their Net Asset Value (NAV). While this introduces some complexity for investors, it underscores how REX Shares is navigating the legal landscape to bring staking-enabled ETFs to market.
Legal and Regulatory Workarounds
This development comes as the SEC remains cautious about ETFs that involve staking. Just earlier in May, the SEC delayed its decision on Bitwise’s application to add staking to its Ether ETF. Analysts said the delay was expected due to the lengthy 19b-4 review process.
In contrast, REX Shares has structured its funds using Cayman Islands subsidiaries to gain spot exposure to ETH and SOL. Seyffart described this as “a bunch of clever legal and regulatory workarounds” that could result in a quicker arrival.
Nate Geraci, President of The ETF Store, supported this view, stating, “it looks like two crypto ETF introductions are imminent.” He also noted that both ETFs plan to stake at least 50% of their ETH and SOL holdings — a feature that could offer investors enhanced returns.
Why Staking Matters in Crypto ETFs
Including staking in ETFs has been one of the most sought-after advancements in the crypto investment space. Staking allows crypto holders to earn rewards by helping secure the network, making it more attractive than simple price exposure.
BlackRock’s Head of Digital Assets, Robbie Mitchnick, acknowledged this limitation earlier this year. While calling the firm’s Ether ETF a “tremendous success,” he admitted that it felt “less perfect” without staking.
If approved, REX Shares’ ETFs would be among the first in the U.S. to provide this additional yield mechanism, potentially making them more appealing to a broader range of investors.
What’s Next for Ethereum and Solana ETFs?
The arrival of staking-enabled ETFs could mark a major step forward in digital asset investing. While spot Bitcoin ETFs have already hit the market, Ethereum and Solana funds with staking elements have remained out of reach — until now.
With analysts describing their debut as “imminent,” market participants are closely watching for final SEC feedback. If these funds enter the market successfully, they could pave the way for more sophisticated crypto investment tools and increase adoption among traditional investors.
For now, the industry is waiting to see whether REX Shares’ unique structure and legal tactics will lead to the successful rollout of the first staking-enabled ETFs in the U.S. — a move that could redefine how crypto is integrated into conventional portfolios.
