- REX Shares filed Ethereum and Solana staking ETFs with a C-Corp and Cayman Islands structure.
- The funds will expose investors to staking yields without relying on the spot ETF framework.
- Both ETFs will list on Nasdaq in the coming weeks pending final logistics
REX Shares has filed a fast-track prospectus for two new crypto staking ETFs: the REX-Osprey™ ETH + Staking ETF (ticker: ESK) and the REX-Osprey™ SOL + Staking ETF (ticker: SSK).
These funds aim to offer investors exposure to staking yields from Ethereum and Solana. They use a novel legal structure to bypass the traditional and slower SEC 19b-4 approval process.
The ETFs, filed on May 30, are structured to accelerate market entry by avoiding the standard spot ETF route. Instead, they combine a rare C-Corporation designation with Cayman Islands subsidiaries to deliver staking exposure in a regulated and investor-accessible format.
How the ETFs Are Structured
C-Corp Designation
The ETFs are organized as C-corporations, a structure seldom used in the ETF world, aside from some MLP-focused products. This setup allows the funds to recognize current and deferred tax liabilities within their Net Asset Value (NAV), making them eligible for SEC compliance in relation to staking income.
However, this approach introduces some tax inefficiency due to corporate income tax obligations.
Cayman Subsidiaries
Staking operations for ETH and SOL will be executed through wholly owned subsidiaries based in the Cayman Islands. This indirect exposure is designed to sidestep U.S. restrictions that prevent grantor trust ETFs, such as those used for spot Bitcoin and Ethereum, from engaging directly in staking.
Because the filing was made under Rule 485(b) of the Investment Company Act of 1940, the prospectus became effective immediately, avoiding the extended 19b-4 approval timeline.
Launching Timeline
Bloomberg ETF analyst James Seyffart highlighted the rarity of the C-Corp structure and called the Cayman route a “clever legal workaround.” Still, he noted that more efficient structures may arrive later, depending on forthcoming IRS guidance on staking and taxation for grantor trusts.
Both ETFs will list on Nasdaq in the coming weeks, pending operational logistics. As 1940 Act funds, they do not require formal SEC approval to begin trading.
Related: After Bitcoin, Ethereum ETFs, Focus Shifts to Altcoins; XRP Leads with 83% Approval Odds
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