The U.S. Securities and Exchange Commission (SEC) has taken a pivotal step toward the potential launch of the first staked Ethereum (ETH) and Solana (SOL) exchange-traded funds (ETFs). With no further regulatory objections raised, REX Financial and Osprey Funds are now poised to bring groundbreaking yield-generating crypto investment products to market—marking a significant evolution in how institutional and retail investors access digital assets.
This development follows a quiet but powerful signal from the SEC: a June 27 statement confirming it had “no further comments” on the joint filings submitted by REX and Osprey for their staked ETH and SOL ETFs. According to Bloomberg ETF analyst Eric Balchunas, this response effectively clears the path for an imminent product launch, assuming all internal preparations are complete.
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Regulatory Green Light: What “No Further Comments” Means
In financial markets, when the SEC issues a “no further comments” letter, it typically signifies that all regulatory concerns have been addressed and the issuer can proceed with launching the product. For REX and Osprey, this milestone suggests their unique fund structures—previously under scrutiny—have been accepted, at least provisionally.
The two firms initially filed for staked ETH and SOL ETFs in late May, proposing funds structured as C-corporations that would directly hold and stake the underlying cryptocurrencies. Unlike traditional ETFs, which passively track prices, these products aim to generate yield through on-chain staking while providing exposure to asset appreciation.
However, early on, the SEC expressed concerns about whether C-corporation structures comply with Rule 6c-11 under the Investment Company Act, which governs ETF operations and specifies permissible corporate forms. The rule traditionally favors registered open-end funds, creating uncertainty around non-traditional setups.
Despite these hurdles, REX and Osprey worked closely with regulators to clarify their compliance posture. The absence of additional objections now indicates the SEC may be adapting its stance—potentially opening doors for more innovation in crypto-based financial products.
“Here’s the SEC saying it has no further comments, so they are good to launch—it looks like,” said Eric Balchunas in a widely shared tweet thread.
This regulatory flexibility could set a precedent for future crypto ETF applications, especially those involving staking, yield generation, or novel corporate structures.
A New Era of Yield-Generating Crypto ETFs
REX and Osprey are positioning their upcoming offerings as the first-ever staked crypto ETFs available to U.S. investors. Their newly launched “Coming Soon” campaign teases a new class of investment vehicle designed to combine capital appreciation with passive income.
The REX-Osprey™ SOL + Staking ETF, for example, aims to:
- Track the performance of Solana (SOL)
- Generate yield through on-chain staking
- Distribute staking rewards directly to shareholders
This dual-benefit model—exposure plus yield—is expected to appeal to both long-term holders and income-focused investors who previously had limited regulated avenues to earn returns on their crypto holdings.
Why Staking Matters in Institutional Adoption
Staking transforms passive ownership into active participation. By locking up tokens to support network security and consensus, investors earn rewards—typically ranging from 5% to 8% annually for ETH and SOL, depending on network conditions.
Until now, most U.S.-based investors accessed staking through centralized platforms or self-custody solutions, both of which carry counterparty or operational risks. A regulated ETF wrapper changes that dynamic by offering:
- Audited custodial security
- Transparent fee structures
- Regulatory oversight
- Simplified tax reporting
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For institutions, this means easier integration into portfolios governed by compliance and risk mandates. It also aligns with growing demand for alternative yield sources in a high-inflation environment where traditional fixed-income returns remain under pressure.
Broader Industry Shift: SEC Opens Door to Staked ETFs
The REX-Osprey development is not isolated. It reflects a broader shift in the SEC’s approach to crypto ETFs—particularly around staking.
Earlier in 2025, the SEC signaled openness to Solana ETF proposals after requesting revisions related to in-kind redemptions and staking practices. In response, all seven major asset managers pursuing Solana ETFs—including Grayscale, VanEck, 21Shares, Bitwise, Franklin Templeton, Canary Capital, and Osprey—updated their filings to include staking functionality.
This coordinated move underscores growing consensus: staking is no longer a fringe feature but a core component of next-generation digital asset investing.
Moreover, Ethereum’s transition to proof-of-stake has made staking integral to the network’s operation. As ETH continues to gain traction as a foundational layer-one blockchain, demand for compliant, accessible staking products will only increase.
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Frequently Asked Questions (FAQ)
Q: What is a staked crypto ETF?
A: A staked crypto ETF holds proof-of-stake cryptocurrencies like Ethereum or Solana and participates in staking to earn rewards. These rewards are distributed to shareholders, offering both price exposure and yield in a single regulated product.
Q: Are staked ETFs safe for retail investors?
A: Yes—when offered through registered funds with transparent custodianship and SEC oversight. They reduce risks associated with self-staking or using unregulated platforms.
Q: Will I pay taxes on staking rewards from an ETF?
A: Likely yes. Distributions from staking rewards may be treated as taxable income in the U.S., similar to dividend payments. Investors should consult a tax professional.
Q: How is this different from owning ETH or SOL directly?
A: Direct ownership requires managing wallets and validators. A staked ETF simplifies access through brokerage accounts while ensuring regulatory compliance and professional management.
Q: When will the REX-Osprey staked ETFs launch?
A: No official date has been announced, but with SEC objections resolved, a launch could occur within weeks pending final operational readiness.
Q: Can other cryptocurrencies get staked ETFs?
A: Potentially. If successful, the REX-Osprey model could pave the way for staked ETFs on assets like Cardano (ADA), Polkadot (DOT), or Avalanche (AVAX—subject to regulatory approval.
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Final Outlook: The Dawn of a New Crypto Investment Class
The potential launch of the REX-Osprey staked ETH and SOL ETFs represents more than just another product debut—it signals a maturing crypto ecosystem where innovation meets regulation.
By embracing staking within a compliant framework, the SEC appears to be acknowledging the legitimacy of decentralized network participation as a viable investment strategy. This could accelerate institutional capital flows into altcoins and fuel broader adoption across wealth management platforms.
For everyday investors, it means simpler, safer access to yield-generating digital assets without sacrificing control or security.
As the lines between traditional finance and decentralized systems continue to blur, products like these will play a crucial role in shaping the future of investing—one where growth and income go hand in hand.