REX Shares is set to launch the first Ethereum and Solana staking ETFs in the U.S., which may impact the cryptocurrency market.
New Staking ETFs Use C-Corp for Approval
REX Shares has filed a prospectus for the first U.S. staking ETFs based on Ethereum and Solana. These products utilize a C-Corp and Cayman subsidiary structure to navigate regulatory challenges. The ETFs aim to hold and stake at least 50% of their Solana and Ether exposure.
Experts Forecast Boost in Crypto Yield Demand
Market experts such as Eric Balchunas and Nate Geraci view these ETFs as a significant step forward. The anticipated launch reflects deep institutional demand for yield-bearing crypto assets. The ETFs are expected to drive increased participation in Ethereum and Solana staking, potentially boosting total value locked in these ecosystems.
Potential Liquidity Surge Mirrors Bitcoin ETF Impact
Earlier ETF launches for Bitcoin have illustrated the potential for increased liquidity. Staking ETFs could similarly boost market engagement, marking a first for the U.S. crypto sector. By employing innovative legal frameworks, REX Shares provides a model that may shape future regulatory strategies.
James Seyffart, ETF Research Analyst at Bloomberg, observed that the use of clever legal and regulatory workarounds allows these products to market. This indicates that the structure may provide some level of signoff from the SEC.
