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- REX Shares set to launch the first Ethereum and Solana staking ETFs in the U.S. within weeks, addressing market gaps.
- Unique regulatory structure lets REX Shares bypass delays, ensuring faster approval for staking ETFs.
- Cayman subsidiaries help speed up Ether and Solana ETF approval, avoiding regulatory hurdles and delays.
REX Shares is getting ready to introduce the first-ever Ethereum and Solana staking ETFs in the United States. According to the latest reports, the products will be released in the coming weeks. This happened after there was high anticipation in the industry for spot Ether ETFs to offer staking, which started in July 2024. People in the industry think these ETFs are needed to fill a real gap in the market.
A lot of investors have been looking forward to the inclusion of staking in these ETFs. The industry has pointed out that these Ether ETFs lack an option for direct interaction. James Seyffart stated that REX Shares was filed with unique regulatory standards. The structure is meant to ensure ETFs can be launched more quickly and without facing the sluggishness often seen in crypto-based ETFs.
REX Shares noted in their filing that the funds would be organized as C corporations for taxation. Since these funds are from a Class C asset, they will need to pay current and deferred taxes. Any taxes the funds pay will show up in their Net Asset Value (NAV). However, it plays a key role, as it could affect how investors see the worth of these ETFs.
Source: James Seyffart
REX Shares Cayman Subsidiaries Strategy
However, REX Shares manages to avoid the usual 19b-4 filing requirement by using a regulatory workaround. The process is commonly needed for ETF applications and may take some time. With this strategy, REX Shares plans to accelerate the process of getting the staking ETFs approved and launched. While, critics have applauded this strategy for taking advantage of legal and regulatory laws.
Seyffart added that these ETFs will hold Ether and Solana tokens via separate subsidiaries in Cayman. Using this method, REX Shares avoids facing the regulatory hurdles that would often slow the process. However, the company now seems to be on the path to obtaining SEC approval for its ETFs.
However, the SEC took action after holding up a decision on Bitwise’s request to include staking in its Ether ETF in May. It was anticipated by Seyffart that the SEC might need the entire response period. However, REX Shares has managed to do this more quickly by choosing a different approach.
Nate Geraci pointed out that REX Shares had used a turnaround in the rules to introduce these ETFs first. He thinks that, before long, the ETFs he mentioned will be launched, each with at least half of their money invested. However, adding staking to the ETF is viewed as an important milestone for the ETF market in the cryptocurrency industry.
