The SEC is probing Ethereum ($ETH) and Solana ($SOL) ETFs over staking and their legal status as investment companies. Here's what's happening:

- *The Issue*: The SEC has raised questions about whether these ETFs, structured as C-corporations, can meet the definition of an "investment company" under the Investment Company Act.

- *The ETFs*: REX Shares filed for Ethereum and Solana staking ETFs, which could launch imminently, according to ETF analyst James Seyffart. These ETFs would stake at least 50% of their Ether and Solana holdings.

- *SEC Concerns*: The SEC has unresolved questions about the funds' structure and operation, but this might not necessarily hinder other issuers' efforts to unlock staking features for their own funds.

- *Industry Expectations*: Nate Geraci, president of The ETF Store, expects the SEC to approve spot Solana ETFs and staking within both spot Solana and Ether ETFs likely by year-end.

- *Recent Developments*: The SEC delayed its decision on Bitwise's application to add staking to its Ether ETF, and Grayscale's proposal to stake its Ether ETF holdings is still pending, with a decision expected by October.

It's worth noting that ETF analyst James Seyffart believes the SEC is working towards a framework for staking in an ETF wrapper, and this probe might be more about the structure of these specific filings rather than a push against staking ETFs.