REX Shares has filed a prospectus with the US Securities and Exchange Commission (SEC) to launch two groundbreaking exchange-traded funds (ETFs) focused on staking Ethereum (ETH) and Solana (SOL). Rather than opting for a 19b-4 process for traditional ETF filings, REX Shares chose the 40-Act filing under the Investment Company Act 1940. This structure circumvents the protracted job of obtaining regulatory approval from the SEC and should expedite the launch in the market. James Seyffart, a Bloomberg ETF analyst, shared this news on social media and confirmed the details about REXShares’ filing. BIG NEWS: @REXShares just filed an effective prospectus for Solana and Ethereum staking ETFs to list here in the US. Don’t know launch date but could be within the next few weeks. These are 40-act funds with a unique structure and do not go through the 19b-4 process pic.twitter.com/cqUCWlFAZW — James Seyffart (@JSeyff) May 30, 2025 The move is a major development in the growth of cryptocurrency investment products in the United States. Rex Shares uses C-Corp and Cayman subsidiaries to speed ETH & SOL staking ETFs Each fund will utilize a C-corporation structure, a rare choice in the ETF industry, to facilitate participation in staking activities while adhering to regulatory standards. The funds will gain exposure to ETH and SOL through wholly owned Cayman Islands subsidiaries that will acquire and stake the cryptocurrencies. The launch date is uncertain, but Seyffart says these ETFs could be added within the next few weeks. Today’s filing comes in the wake of the US regulator, the Securities and Exchange Commission, having recently affirmed that staking through a PoS-based network is not considered securities. Commenting further on the Rex Shares filing, James Seyffart noted that it was a smart move “As you can see in screenshot above. They will be getting their spot exposure to ETH and SOL via Cayman subsidiaries. All of this, assuming they launch in near future, is a bunch of clever legal and regulatory work-arounds to get these products to market,” he said in the X post. SEC delays on spot crypto ETFs push Rex Shares to take alternative route Rex Shares opting for this not-so-traveled path is likely an indirect result of the United States not approving any crypto spot ETFs to date. The SEC recently delayed decisions on Grayscale’s Avalanche and Cardano spot ETF applications. This halt affects Grayscale’s work to transform its Avalanche Trust into a spot ETF and a similar application for Cardano. The SEC began the 240-day statutory review period of Grayscale’s Cardano ETF proposal in February, and expectations remained high as the deadline neared. Prediction markets like Polymarket put the odds at about 71%, suggesting investors were highly optimistic. However, the anticipation would be dampened by the delay. The SEC has also reopened comments to elicit feedback from the public, therefore continuing to assess both regulatory and market impact considerations. In related news, the SEC moved WisdomTree’s XRP spot ETF proposal to the next stage in the review process. The solicitation of comments is requested through public notice regarding investor protection and potential market manipulation concerns. This proposal is made pursuant to Section 19(b)(2)(B), which shows that continued review is appropriate. It would be one of the first spot XRP ETFs approved in the US if passed. Nasdaq has also filed a Form 19b-4 to list and trade shares of the 21Shares Sui ETF on its exchange, representing the launch of the initial regulatory review period. This comes after 21Shares filed an earlier S-1, signaling its interest in providing institutional exposure to the SUI token. Meanwhile, SUI — the native asset of the Sui network — saw a mere 2% price bump following the filing news. But it currently trades around $3.32, a drop of roughly 6.9% in keeping with the broader market. Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More
