REX pushes ETH and SOL staking ETFs via rare C-Corp as SEC softens stance

REX Shares filed an immediately effective prospectus to list two exchange-traded funds (ETFs) that will hold and stake Ethereum (ETH) and Solana (SOL), according to a May 30 filing.

Bloomberg ETF analyst James Seyffart highlighted in a social media post that the ETFs introduce a C-corporation structure rarely used in the ETF industry to sidestep the customary 19b-4 review.

REX did not disclose seed capital or an official launch date. Still, Seyffart said trading could start “within the next few weeks” if seed shares clear the Depository Trust Company and Nasdaq completes symbol reservation.

ETH and SOL staking ETFs

According to the May 30 prospectus, each fund will own a wholly owned Cayman Islands subsidiary that buys spot Ethereum and Solana and participates in protocol staking to earn native rewards.

Nasdaq will list the products under the Investment Company Act of 1940.

REX Advisers will charge a 0.75% management fee and cover ordinary operating costs. At the same time, the C-corp vehicle will accrue current and deferred US income tax, bringing estimated first-year expenses to 1.28% of assets.

Seyffart said that the C-corp wrapper, more common in master-limited-partnership funds, appears to have provided “one way to get some level of sign-off from the SEC” for staking revenue inside a registered ETF. 

Because 40-Act funds do not require an exchange-rule change, they avoid the 19b-4 filings that delayed spot Bitcoin ETFs until January 2025 and still block traditional grantor-trust vehicles from staking.

Seyffart added:

“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.”

Filing follows SEC clarification on staking

The submission lands one day after the Securities and Exchange Commission (SEC) announced that protocol staking, whether self-directed, delegated, custodial, or pooled, does not constitute a securities transaction under federal law.

The staff letter said participants “do not need to register” those activities, removing a central legal question that has clouded ETF staking proposals.

Market observers view the guidance as an opportunity for fund issuers seeking to add yield to their proof-of-stake holdings. The SEC cautioned that ancillary services such as slashing protection or early-withdrawal features still require a case-by-case analysis, but the core activity no longer faces blanket prohibition.

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