Listen, there's some pretty interesting news from the world of cryptocurrencies, especially if you're following how crypto is increasingly infiltrating traditional finance. This Wednesday, the first cryptocurrency-related exchange-traded fund (ETF) in the history of the United States will launch, which will not only track the price of an asset, but also generate income from staking. This is a new level.
It is being launched by Rex Shares and Osprey Funds. The new fund will invest in Solana (SOL), as well as earn on its staking — that is, the income received will be partially distributed among investors. This approach has not been used by any ETFs in the United States up to this point.
The important thing is that they used an interesting legal move — they designed their funds not as classic ETFs, but as C-corporations. This made it possible to circumvent the stricter requirements of regulators. Income from staking will first be taxed within the fund, and only then distributed among investors in the form of dividends. This, of course, makes the structure a little more complicated and potentially more expensive — the total commission is 0.75%, but taking into account taxes, it can be higher.
This story is developing against the background of a general warming of attitudes towards the crypt in the United States — especially after Trump's victory, oddly enough. The SEC is currently reviewing many applications, including ETFs for Ethereum and DOGE, as well as a proposal to transform the Grayscale digital fund, which includes various cryptocurrencies like BTC, SOL and XRP.
In short, the launch of this ETF could set a precedent for the entire crypto market. And if regulators start looking at such products more softly, it will open the door for an even greater influx of institutional investments into the crypt.
Do you think that staking in ETFs will become the new norm for crypto investments, or is it a temporary experiment?
