The first-ever staked cryptocurrency exchange-traded funds (ETFs) are set to debut in the U.S., created by REX Shares and Osprey Funds, providing investors with staking opportunities for Solana and Ethereum.
Overview of New ETFs
The REX-Osprey Solana ETF is expected to launch imminently. This fund will track the price of Solana and distribute staking rewards to shareholders, allowing them to earn rewards typically reserved for blockchain participants.
Structure and Tax Implications
Both ETFs will operate as C corporations, enabling them to stake assets and distribute dividends from staking income. However, this structure results in tax being applied at the fund level before distributions, possibly raising overall costs for investors. Management fees are set at 0.75%.
Market Impact
The introduction of staked crypto ETFs may enhance institutional adoption by providing a regulated investment option for cryptocurrency that generates yield. This allows retail investors to access staking rewards without the technical challenges of blockchain participation. These funds represent a significant step in merging traditional finance with decentralized finance.
The launch of the first staked crypto ETFs in the U.S. is a crucial milestone in the development of digital asset markets, creating new opportunities for investors and bridging the gap with traditional financial instruments.
