TechFlow, May 31 — According to The Block, REX Shares and Osprey Funds submitted applications to the U.S. SEC on May 30 to launch so-called "staking ETFs." These products will track the underlying asset prices of both ETH and SOL while providing staking rewards to holders.
According to the SEC's N-1A filing documents, these two new ETFs will "invest at least 80% of their net assets in their respective reference assets" (i.e., ETH and SOL), and "at least 50% of holdings" will be allocated to staking.
Unlike existing spot Bitcoin and Ethereum ETFs, these staking ETFs will be classified as "ordinary C corporations" for U.S. federal income tax purposes, rather than "regulated investment companies." As a result, staking distributions to shareholders will be treated as dividend income.
