#Solana and #Ethereum equipped with #Staking soon in trading
The first exchange-traded funds (#ETFs ) that will track cryptocurrency prices and provide investors with investment returns will soon start trading in the United States.
These new funds, to be launched by REX Shares and Osprey Funds, are on track for approval after the U.S. Securities and Exchange Commission (#SEC ) completed its comments.
REX and Osprey submitted an application to the U.S. Securities and Exchange Commission in May to create Class C exchange-traded funds that invest in Ethereum ($ETH ) and Solana ($SOL
) and provides additional returns by investing a portion of these assets. However, the U.S. Securities and Exchange Commission temporarily halted the process, citing some legal uncertainties related to these applications.
With the U.S. Securities and Exchange Commission completing its final review, reports indicate that the funds are now free of any obstacles. Eric Balchunas, senior ETF analyst at Bloomberg, wrote on his X account (formerly Twitter): "It looks like they are ready for launch, how exciting!"
On the same day, REX Shares announced via platform X that the Solana staking ETF will be launched very soon. Although there was no direct statement regarding the Ethereum staking ETF, both funds are listed in the registration documents submitted to the U.S. Securities and Exchange Commission (SEC). The funds will trade on the Cboe BZX exchange under the symbols ESK (Ethereum staking ETF) and SSK (Solana staking ETF) respectively.
This development comes in a highly competitive environment, especially from Solana. Major firms like Invesco and Galaxy have also submitted applications for immediate Solana staking ETFs. Eric Balchunas stated that these funds could be approved within two to four months.
However, the REX-Osprey approach offers a compelling legal solution to bypass this approval process. Unlike most exchange-traded funds, the funds choose to set up a taxable C corporation, which allows for tax on trading income within the fund before it is passed on to investors as profits. While management fees for both funds have been set at 0.75%, the overall cost is expected to be higher due to income taxes. $XRP