Ethereum and Solana Staking ETFs Approach U.S. Market Debut
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Two new exchange-traded funds (ETFs) focused on Ethereum and Solana staking are nearing their debut on U.S. markets. Named the Rex-Osprey ETH + Staking ETF (ticker: ESK) and the Rex-Osprey SOL + Staking ETF (ticker: SSK), both products are set to launch on Nasdaq.
Unlike traditional spot bitcoin or ethereum ETFs, these funds are structured under the Investment Company Act of 1940 (commonly known as the 40-Act), allowing them to sidestep the complex 19b-4 filing process typically required for crypto-related products.
The ETFs are designed to offer investors exposure to Ethereum (ETH) and Solana (SOL), with an added feature: staking a portion of the assets to earn network rewards. The Ethereum ETF plans to stake at least half of its holdings, while the Solana counterpart will adopt a similar approach. Staking involves locking up digital assets to help validate blockchain transactions in return for yield.
First reported by Bloomberg Intelligence ETF analyst James Seyffart, the structure of these funds includes Cayman Islands-based subsidiaries—an increasingly common method used by crypto ETFs to address regulatory hurdles. Notably, these ETFs will be taxed as C-corporations rather than standard ETFs, due to the nature of their crypto-heavy portfolios.
ETH and SOL Staking ETFs Outline Fees and Near-Term Launch Potential
The recently filed prospectus for the Rex-Osprey Ethereum and Solana staking ETFs details annual expense ratios of 1.28% for the ETH fund and 1.40% for the SOL fund. These figures include a 0.75% management fee, with the remainder covering estimated tax liabilities. Both ETFs also highlight key investment risks, including potential regulatory shifts, liquidity challenges, and the high volatility typical of crypto markets.
Importantly, while the SEC has declared the funds effective, this doesn’t guarantee immediate trading. Final preparations are still underway, though Bloomberg’s James Seyffart notes that the ETFs could begin trading “within the next few weeks.”
This move aligns with rising investor interest in crypto-linked products that offer yield potential through mechanisms like staking. Rex Shares’ offerings may appeal to investors who want exposure to Ethereum and Solana’s performance and staking rewards—without having to directly manage or secure the underlying crypto assets.
The funds will trade like traditional ETFs, with creations and redemptions primarily in cash. Market makers and authorized participants will play a key role in maintaining liquidity.
