Rex Stocks quickly submitted an effective prospectus to list two Exchange-Traded Funds (ETFs) holding and betting Ethereum (ETH) and Solana (SOL). According to submissions on May 30th.
Bloomberg ETF analyst James Seifert was highlighted in a social media post It is rare for ETFs to introduce C Corporation structures that are not used in the ETF industry to avoid conventional 19B-4 reviews.
Rex did not disclose seed capital or official launch dates. Still, Seyffart said that if Seed clears the deposit trust company and Nasdaq completes the symbol reservation, the transaction can begin “in the coming weeks.”
ETH and SOL STAKING ETF
According to the May 30th prospectus, each fund will own a wholly owned Cayman Islands subsidiary that will purchase Spot Ethereum and Solana and participate in protocol staking to earn native rewards.
NASDAQ lists products under the Investment Companies Act of 1940.
Rex Advisers charges a 0.75% administrative fee and covers normal operating expenses. At the same time, the C-CORP vehicle incurred current taxes, deferring US income taxes, bringing an estimated one-year expense to its assets of 1.28%.
Seyffart said that C-CORP rappers, more common in Master Restricted Partnership Funds, appear to offer “one way to get some degree of sign-off from the SEC” to raise revenue within registered ETFs.
40 ACT funds do not require changes to exchange rules, so they will delay spot Bitcoin ETFs until January 2025, avoiding 19B-4 filing where traditional Grant Trust vehicles block staking.
Seyffart Added:
“All of these are clever legal and regulatory labor-arounds to bring these products to the market, assuming they’re launched in the near future.”
The filing follows the SEC’s clarification regarding staking
Submissions will arrive one day after the Securities and Exchange Commission (SEC). The protocol staking has been announcedwhether voluntarily, mandated, detained or pooled, securities transactions under federal law do not constitute.
The staff letter said participants “doesn’t have to register” these activities, removing the central legal issue that clouded the ETF’s staking proposal.
Market observers view this guidance as an opportunity for fund issuers to try to add yields to their proof holdings. The SEC warned that while auxiliary services such as reduced protection and early withdrawal features require case-by-case analysis, core activity no longer faces the ban on blankets.
