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REX-Osprey has introduced the United States’ first Ethereum staking ETF, giving investors a regulated way to gain exposure to ETH while earning staking rewards. The new fund, trading under the ticker ESK, combines directly staked Ethereum with exchange-traded products (ETPs) that also stake ETH, ensuring investors receive all rewards without any retention by REX or Osprey.
Greg King, CEO of REX Financial, explained, “With ESK, we’re giving investors access to Ethereum plus staking rewards in the most broad-based US ETF format.” The fund operates under the 1940 Act structure, providing a familiar regulatory framework for US investors seeking exposure to crypto assets.
Monthly Ethereum Rewards Passed Directly to Investors
Unlike traditional crypto funds, ESK distributes Ethereum staking rewards on a monthly basis directly to investors. This approach allows investors to benefit from the growing Ethereum network while holding the ETF, bridging the gap between direct staking and traditional investment vehicles.
The structure combines staked ETH and ETPs that engage in staking, allowing for a seamless integration of staking income with standard ETF ownership. Investors receive all staking rewards without fees being retained by the fund managers, offering a transparent model that could appeal to both retail and institutional participants.
REX-Osprey’s Crypto ETF Expansion
REX-Osprey’s venture represents a growing trend in regulated crypto ETFs. The joint partnership between REX Shares and Osprey Funds focuses on providing investors with regulated access to digital assets in a familiar US ETF format.
Last week, the firm also introduced Dogecoin (DOJE) and XRP (XRPR) ETFs in the United States. On debut, XRPR saw trading volume of about $37.7 million, while DOJE recorded $17 million. XRPR continues to trade actively with over 200,000 shares exchanged daily, while DOJE has attracted approximately $8 million in inflows since start.
The new ETFs allow investors to hold DOGE and XRP directly through regulated channels, avoiding the complexities of digital wallets or crypto exchanges.
The Broader ETF Market Context
Spot Ethereum ETFs in the US manage nearly $25 billion in assets, with BlackRock’s ETHA controlling the largest share. Despite this, Ethereum-focused funds saw outflows of approximately $79 million recently, even as Bitcoin ETFs recorded inflows exceeding $149 million, led by BlackRock’s IBIT product.
The introduce of ESK could address some of these outflows by providing direct staking benefits, making Ethereum exposure more attractive to investors seeking yield in addition to price appreciation. Competitors like BlackRock, Fidelity, and Franklin Templeton are still waiting for SEC approval for staking-enabled Ethereum ETFs, giving REX-Osprey a first-mover advantage.
Meeting Rising Investor Demand
REX-Osprey’s new ETFs respond to growing demand for regulated crypto investment vehicles in the US. By combining spot price tracking with staking or direct crypto exposure, the funds offer a straightforward, accessible way for investors to participate in digital assets without managing private keys or navigating complex exchanges.
The use of the 1940 Act structure ensures compliance and provides confidence for investors wary of regulatory risks. This approach aligns with a broader trend in the US ETF market, where investors increasingly prefer regulated access to crypto over unregulated platforms.
Potential Impact on the Market
The start of the ESK ETF could signal a new wave of adoption for staking-focused investment products. By delivering staking rewards directly, REX-Osprey differentiates itself from traditional ETFs that may only track spot prices.
For Ethereum holders and potential investors, this could provide an opportunity to earn passive yield while maintaining exposure to ETH price movements. Similarly, the successful debut of DOGE and XRP ETFs may encourage further institutional and retail participation in the crypto ETF space.
Analysts suggest that the regulated, reward-focused structure of these ETFs may attract investors who have previously avoided crypto due to security, custody, or compliance concerns. The combination of staking benefits and a traditional ETF structure could make these products particularly appealing in a market still adjusting to digital asset adoption.
Conclusion
REX-Osprey’s Ethereum staking ETF, ESK, marks a significant milestone for US investors seeking regulated crypto exposure combined with staking rewards. Alongside the new Dogecoin and XRP ETFs, the firm is positioning itself at the forefront of the US crypto ETF market.
With direct staking payouts, compliance under the 1940 Act, and a simple, accessible investment structure, ESK provides a compelling alternative for those looking to participate in Ethereum’s growth while generating passive income. As the market continues to evolve, REX-Osprey’s approach may set a benchmark for future staking-enabled ETFs.
