Staking Ethereum & Solana ETFs: REX & Osprey's Move 🚀
REX Shares and Osprey Funds have announced plans to offer 'staking ETFs' for Ethereum (ETH) and Solana (SOL) that not only track these assets but also provide token rewards. According to their SEC filing, these funds will invest at least 80% of their assets in ETH and SOL and stake over 50% of their holdings. The ETFs will be structured as regular corporations for tax purposes, with staking returns treated as dividend income. This move, part of larger industry efforts to clarify crypto staking regulations, represents innovative legal strategies to bring these products to market. The funds will have annual operating expenses of 1.28% for ETH and 1.4% for SOL.
FAQ
❓ What are staking ETFs?
Staking ETFs are investment funds that offer rewards by staking the underlying crypto assets in addition to tracking their value.
❓ How does staking benefit ETF holders?
Staking generates returns by rewarding those who help secure the blockchain, distributed to ETF holders as dividends.
❓ What is the regulatory outlook for staking ETFs?
The SEC is reviewing the regulatory environment for staking, with industry advocates actively engaging in discussions.