SEC's concerns over Solana and Ether staked ETFs:
🔍 SEC Raises Concerns Over Solana & Ether Staked ETFs
The U.S. SEC has expressed doubts about the registration amendments submitted by REX Financial and Osprey Funds for Solana (SOL) and Ethereum (ETH) staking ETFs. The main issues are:
📌 Business Structure Conflict: These ETFs use a rare c-corp structure which violates Rule 6C-11, the typical framework for ETF approvals.
⚠️ Misleading Disclosures: The SEC questions whether the funds qualify as investment companies under the Investment Company Act and claims the current disclosures might mislead investors.
💬 Analyst Insights
Eric Balchunas (Bloomberg): Notes optimism from REX’s legal team; issuers are pushing hard to be first to market.
James Seyffart (Bloomberg): Says such delays are normal and most ETF approvals don’t happen this early. Final decisions are expected around October.
📈 Market Relevance
Approval could bring traditional finance liquidity into crypto markets.
The SEC's cautious stance contrasts with recent regulatory signals suggesting staking may not be classified as a securities transaction.
