SEC Clears Path for Staked ETH & SOL ETFs

SEC Greenlights Staked Ethereum and Solana ETFs

The Securities and Exchange Commission (SEC) has signaled its approval for the launch of the first staked Ethereum (ETH) and Solana (SOL) exchange-traded funds (ETFs) in the US. This follows a statement issued on June 27th, where the SEC indicated it had “no further comments” on filings from ETF provider REX Financial and asset management firm Osprey Funds.

Key Developments

• The SEC's lack of further comment clears the way for REX and Osprey to launch their staked ETH and SOL ETFs.
• This development could significantly accelerate institutional investment in altcoins.
• The SEC’s response followed a request from REX and Osprey confirming the resolution of all staff comments on their filings.

Bloomberg ETF analyst Eric Balchunas reported the news, citing the SEC's statement as a positive sign for the impending launch. REX and Osprey originally submitted their applications in late May, proposing innovative ETF structures that would allow the funds to stake ETH and SOL, sharing the resulting staking rewards with investors.

Initially, the SEC raised concerns about the firms' unique C-corporation structure, which did not align with established ETF regulations. Despite these initial hurdles, the positive resolution reflects a potential shift in SEC policy regarding the integration of staking into ETF structures.

The potential impact is substantial. The launch of these ETFs could introduce significant liquidity into the cryptocurrency market, particularly for institutional investors who previously faced limitations in accessing staked crypto assets. REX and Osprey have already begun promotional campaigns hinting at an imminent launch, further reinforcing market expectations.

This positive movement is not isolated to REX and Osprey. The SEC has also signaled potential approval for other Solana ETFs later this year. Several asset managers, including Grayscale, VanEck, 21Shares, Canary Capital, Bitwise, and Franklin Templeton, have updated their filings to incorporate staking functionalities in response to SEC feedback.

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