REX Files Ethereum and Solana Staking ETFs Following SEC Staking Rule Clarification

REX Shares has filed with the U.S. Securities and Exchange Commission (SEC) to launch two new exchange-traded funds (ETFs) focused on Ethereum and Solana, with a significant twist—both funds will incorporate staking. The move comes on the heels of updated SEC guidance that clarified staking activities on proof-of-stake (PoS) blockchains do not automatically fall under securities regulations.

A First for Solana, a Shift for Ethereum ETFs

The May 30 filing was marked “immediately effective,” meaning the launch could happen in short order. If approved, REX’s Solana product would be the first spot ETF for the asset, as existing Solana-related offerings are limited to futures-based exposure.

Both ETFs plan to hold at least 80% of their assets in either Ethereum or Solana, with half of those holdings actively staked to earn on-chain rewards. The staking income will be distributed to shareholders as dividends—an innovation in the crypto ETF space.

Unconventional Structure, Strategic Timing

To navigate regulatory hurdles, REX structured the ETFs as C corporations instead of the more common regulated investment companies (RICs). This C-corp setup is rare in the ETF world but offers certain tax advantages, especially around yield-generating activities like staking.

ETF analysts see this as a calculated and creative legal approach. “This was a clever regulatory workaround,” said James Seyffart of Bloomberg. “There are pros and cons, but it looks like this structure helped gain some level of SEC approval.”

REX also used the Investment Company Act of 1940 (commonly known as the “40 Act”) to fast-track the process. This strategy allows them to bypass the longer regulatory pathway required under the Securities Act of 1933, which is still commonly used for most crypto-related ETF filings.

SEC's Clarification Opens Doors

The filing comes just days after the SEC released a key clarification on staking. The agency stated that not all staking models fall within the definition of securities and that added features—such as early withdrawal options—don’t necessarily change that status. This announcement gives ETF issuers new confidence in building regulated products that include staking.

SEC Commissioner Hester Peirce confirmed the regulator’s position, saying that the Division of Corporation Finance clarified its view that certain staking activities on PoS networks are not, by default, securities transactions.

A Turning Point for Crypto ETFs

Industry watchers believe this could mark a major shift in the evolution of crypto investment vehicles. Nate Geraci, president of The ETF Store, noted that the updated regulatory stance could lead to a wave of new products offering yield-generating exposure to digital assets in familiar, publicly traded formats.

While the long-term future of C-corp crypto ETFs remains uncertain—especially as grantor trusts are expected to evolve with IRS input—the REX filings represent a significant step forward in merging decentralized finance with traditional markets.